Correlation Between Meiwu Technology and Zapata Computing
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Zapata Computing 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 Zapata Computing 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 Zapata Computing Holdings, you can compare the effects of market volatilities on Meiwu Technology and Zapata Computing 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 Zapata Computing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Zapata Computing.
Diversification Opportunities for Meiwu Technology and Zapata Computing
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiwu and Zapata is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Zapata Computing Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zapata Computing 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 Zapata Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zapata Computing Holdings has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Zapata Computing go up and down completely randomly.
Pair Corralation between Meiwu Technology and Zapata Computing
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.85 times more return on investment than Zapata Computing. However, Meiwu Technology Co is 1.18 times less risky than Zapata Computing. It trades about 0.03 of its potential returns per unit of risk. Zapata Computing Holdings is currently generating about -0.19 per unit of risk. If you would invest 256.00 in Meiwu Technology Co on September 12, 2024 and sell it today you would lose (126.90) from holding Meiwu Technology Co or give up 49.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.52% |
| Values | Daily Returns |
Meiwu Technology Co vs. Zapata Computing Holdings
Performance |
| Timeline |
| Meiwu Technology |
| Zapata Computing Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Zapata Computing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Zapata Computing
The main advantage of trading using opposite Meiwu Technology and Zapata Computing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Zapata Computing 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 Zapata Computing will offset losses from the drop in Zapata Computing's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Zapata Computing vs. Meiwu Technology Co | Zapata Computing vs. Anterix | Zapata Computing vs. Casio Computer Co | Zapata Computing vs. Grupo Televisa SAB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |