Correlation Between Meiwu Technology and Vera Bradley
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Vera Bradley 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 Vera Bradley 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 Vera Bradley, you can compare the effects of market volatilities on Meiwu Technology and Vera Bradley 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 Vera Bradley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Vera Bradley.
Diversification Opportunities for Meiwu Technology and Vera Bradley
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meiwu and Vera is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Vera Bradley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vera Bradley 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 Vera Bradley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vera Bradley has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Vera Bradley go up and down completely randomly.
Pair Corralation between Meiwu Technology and Vera Bradley
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 2.22 times more return on investment than Vera Bradley. However, Meiwu Technology is 2.22 times more volatile than Vera Bradley. It trades about 0.03 of its potential returns per unit of risk. Vera Bradley is currently generating about -0.01 per unit of risk. If you would invest 99.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (1.00) from holding Meiwu Technology Co or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Vera Bradley
Performance |
| Timeline |
| Meiwu Technology |
| Vera Bradley |
Meiwu Technology and Vera Bradley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Vera Bradley
The main advantage of trading using opposite Meiwu Technology and Vera Bradley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Vera Bradley 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 Vera Bradley will offset losses from the drop in Vera Bradley's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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