Correlation Between Meiwu Technology and Taylor Wimpey
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Taylor Wimpey 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 Taylor Wimpey 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 Taylor Wimpey plc, you can compare the effects of market volatilities on Meiwu Technology and Taylor Wimpey 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 Taylor Wimpey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Taylor Wimpey.
Diversification Opportunities for Meiwu Technology and Taylor Wimpey
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Taylor is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Taylor Wimpey plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Wimpey plc 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 Taylor Wimpey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Wimpey plc has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Taylor Wimpey go up and down completely randomly.
Pair Corralation between Meiwu Technology and Taylor Wimpey
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Taylor Wimpey. In addition to that, Meiwu Technology is 1.74 times more volatile than Taylor Wimpey plc. It trades about -0.02 of its total potential returns per unit of risk. Taylor Wimpey plc is currently generating about 0.04 per unit of volatility. If you would invest 114.00 in Taylor Wimpey plc on November 2, 2024 and sell it today you would earn a total of 36.00 from holding Taylor Wimpey plc or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.75% |
| Values | Daily Returns |
Meiwu Technology Co vs. Taylor Wimpey plc
Performance |
| Timeline |
| Meiwu Technology |
| Taylor Wimpey plc |
Meiwu Technology and Taylor Wimpey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Taylor Wimpey
The main advantage of trading using opposite Meiwu Technology and Taylor Wimpey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Taylor Wimpey 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 Taylor Wimpey will offset losses from the drop in Taylor Wimpey's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Taylor Wimpey vs. Barratt Developments PLC | Taylor Wimpey vs. Cyrela Brazil Realty | Taylor Wimpey vs. Barratt Developments plc | Taylor Wimpey vs. Persimmon Plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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