Correlation Between Meiwu Technology and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and SunLink Health 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 SunLink Health 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 SunLink Health Systems, you can compare the effects of market volatilities on Meiwu Technology and SunLink Health 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 SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and SunLink Health.
Diversification Opportunities for Meiwu Technology and SunLink Health
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and SunLink is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and SunLink Health go up and down completely randomly.
Pair Corralation between Meiwu Technology and SunLink Health
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the SunLink Health. In addition to that, Meiwu Technology is 2.23 times more volatile than SunLink Health Systems. It trades about -0.02 of its total potential returns per unit of risk. SunLink Health Systems is currently generating about 0.02 per unit of volatility. If you would invest 82.00 in SunLink Health Systems on August 31, 2024 and sell it today you would lose (7.00) from holding SunLink Health Systems or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. SunLink Health Systems
Performance |
| Timeline |
| Meiwu Technology |
| SunLink Health Systems |
Meiwu Technology and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and SunLink Health
The main advantage of trading using opposite Meiwu Technology and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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