Correlation Between XBP Europe and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both XBP Europe and Meiwu Technology 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 XBP Europe and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XBP Europe Holdings and Meiwu Technology Co, you can compare the effects of market volatilities on XBP Europe and Meiwu Technology 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 XBP Europe with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of XBP Europe and Meiwu Technology.
Diversification Opportunities for XBP Europe and Meiwu Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XBP and Meiwu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding XBP Europe Holdings and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and XBP Europe 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 XBP Europe Holdings are associated (or correlated) with Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of XBP Europe i.e., XBP Europe and Meiwu Technology go up and down completely randomly.
Pair Corralation between XBP Europe and Meiwu Technology
Considering the 90-day investment horizon XBP Europe Holdings is expected to generate 1.02 times more return on investment than Meiwu Technology. However, XBP Europe is 1.02 times more volatile than Meiwu Technology Co. It trades about 0.0 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,035 in XBP Europe Holdings on September 2, 2024 and sell it today you would lose (921.00) from holding XBP Europe Holdings or give up 88.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XBP Europe Holdings vs. Meiwu Technology Co
Performance |
| Timeline |
| XBP Europe Holdings |
| Meiwu Technology |
XBP Europe and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XBP Europe and Meiwu Technology
The main advantage of trading using opposite XBP Europe and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XBP Europe position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| XBP Europe vs. Meiwu Technology Co | XBP Europe vs. Simon Property Group | XBP Europe vs. GEN Restaurant Group, | XBP Europe vs. Titan Machinery |
| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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