Correlation Between Meiwu Technology and Sun Country
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Sun Country at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Meiwu Technology and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiwu Technology Co and Sun Country Airlines, you can compare the effects of market volatilities on Meiwu Technology and Sun Country and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Meiwu Technology with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Sun Country.
Diversification Opportunities for Meiwu Technology and Sun Country
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Meiwu and Sun is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines and Meiwu Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Meiwu Technology Co are associated (or correlated) with Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Sun Country go up and down completely randomly.
Pair Corralation between Meiwu Technology and Sun Country
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.07 times more return on investment than Sun Country. However, Meiwu Technology is 1.07 times more volatile than Sun Country Airlines. It trades about 0.36 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.27 per unit of risk. If you would invest 80.00 in Meiwu Technology Co on September 13, 2024 and sell it today you would earn a total of 62.00 from holding Meiwu Technology Co or generate 77.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Sun Country Airlines
Performance |
| Timeline |
| Meiwu Technology |
| Sun Country Airlines |
Meiwu Technology and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Sun Country
The main advantage of trading using opposite Meiwu Technology and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Sun Country can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sun Country will offset losses from the drop in Sun Country's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Sun Country vs. American Airlines Group | Sun Country vs. Southwest Airlines | Sun Country vs. United Airlines Holdings | Sun Country vs. Frontier Group Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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