Correlation Between Meiwu Technology and XBP Europe
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and XBP Europe 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 XBP Europe 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 XBP Europe Holdings, you can compare the effects of market volatilities on Meiwu Technology and XBP Europe 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 XBP Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and XBP Europe.
Diversification Opportunities for Meiwu Technology and XBP Europe
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and XBP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and XBP Europe Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBP Europe Holdings 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 XBP Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBP Europe Holdings has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and XBP Europe go up and down completely randomly.
Pair Corralation between Meiwu Technology and XBP Europe
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.68 times more return on investment than XBP Europe. However, Meiwu Technology Co is 1.47 times less risky than XBP Europe. It trades about 0.02 of its potential returns per unit of risk. XBP Europe Holdings is currently generating about 0.01 per unit of risk. If you would invest 105.00 in Meiwu Technology Co on September 2, 2024 and sell it today you would lose (7.00) from holding Meiwu Technology Co or give up 6.67% 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. XBP Europe Holdings
Performance |
| Timeline |
| Meiwu Technology |
| XBP Europe Holdings |
Meiwu Technology and XBP Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and XBP Europe
The main advantage of trading using opposite Meiwu Technology and XBP Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, XBP Europe 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 XBP Europe will offset losses from the drop in XBP Europe's long position.| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
| XBP Europe vs. Meiwu Technology Co | XBP Europe vs. Simon Property Group | XBP Europe vs. GEN Restaurant Group, | XBP Europe vs. Titan Machinery |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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