Correlation Between Meiwu Technology and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Willscot Mobile 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 Willscot Mobile 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 Willscot Mobile Mini, you can compare the effects of market volatilities on Meiwu Technology and Willscot Mobile 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 Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Willscot Mobile.
Diversification Opportunities for Meiwu Technology and Willscot Mobile
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and Willscot is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini 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 Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Willscot Mobile go up and down completely randomly.
Pair Corralation between Meiwu Technology and Willscot Mobile
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 4.05 times more return on investment than Willscot Mobile. However, Meiwu Technology is 4.05 times more volatile than Willscot Mobile Mini. It trades about 0.02 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about 0.0 per unit of risk. If you would invest 263.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (165.00) from holding Meiwu Technology Co or give up 62.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Willscot Mobile Mini
Performance |
| Timeline |
| Meiwu Technology |
| Willscot Mobile Mini |
Meiwu Technology and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Willscot Mobile
The main advantage of trading using opposite Meiwu Technology and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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