Correlation Between Expand Energy and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Expand Energy 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 Expand Energy and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Meiwu Technology Co, you can compare the effects of market volatilities on Expand Energy 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 Expand Energy with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Meiwu Technology.
Diversification Opportunities for Expand Energy and Meiwu Technology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Expand and Meiwu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Expand Energy 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 Expand Energy 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 Expand Energy i.e., Expand Energy and Meiwu Technology go up and down completely randomly.
Pair Corralation between Expand Energy and Meiwu Technology
Considering the 90-day investment horizon Expand Energy is expected to generate 0.11 times more return on investment than Meiwu Technology. However, Expand Energy is 8.72 times less risky than Meiwu Technology. It trades about 0.14 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about -0.2 per unit of risk. If you would invest 9,605 in Expand Energy on December 27, 2024 and sell it today you would earn a total of 1,389 from holding Expand Energy or generate 14.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Expand Energy vs. Meiwu Technology Co
Performance |
Timeline |
Expand Energy |
Meiwu Technology |
Expand Energy and Meiwu Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Expand Energy and Meiwu Technology
The main advantage of trading using opposite Expand Energy and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy 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.Expand Energy vs. Spyre Therapeutics | Expand Energy vs. Merit Medical Systems | Expand Energy vs. Northstar Clean Technologies | Expand Energy vs. Loews Corp |
Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Natural Health Trend |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
CEOs Directory Screen CEOs from public companies around the world |