Correlation Between Meiwu Technology and Stepstone
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Stepstone 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 Stepstone 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 Stepstone Group, you can compare the effects of market volatilities on Meiwu Technology and Stepstone 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 Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Stepstone.
Diversification Opportunities for Meiwu Technology and Stepstone
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and Stepstone is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group 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 Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Stepstone go up and down completely randomly.
Pair Corralation between Meiwu Technology and Stepstone
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.99 times more return on investment than Stepstone. However, Meiwu Technology is 1.99 times more volatile than Stepstone Group. It trades about 0.09 of its potential returns per unit of risk. Stepstone Group is currently generating about 0.16 per unit of risk. If you would invest 82.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Meiwu Technology Co or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Stepstone Group
Performance |
| Timeline |
| Meiwu Technology |
| Stepstone Group |
Meiwu Technology and Stepstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Stepstone
The main advantage of trading using opposite Meiwu Technology and Stepstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Stepstone 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 Stepstone will offset losses from the drop in Stepstone's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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