Correlation Between INGERSOLL and Meiwu Technology

Can any of the company-specific risk be diversified away by investing in both INGERSOLL 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 INGERSOLL and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INGERSOLL RAND LUXEMBOURG FIN and Meiwu Technology Co, you can compare the effects of market volatilities on INGERSOLL 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 INGERSOLL with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of INGERSOLL and Meiwu Technology.

Diversification Opportunities for INGERSOLL and Meiwu Technology

-0.04

Correlation Coefficient

INGERSOLL  Meiwu Technology

Good diversification

The 3 months correlation between INGERSOLL and Meiwu is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding INGERSOLL RAND LUXEMBOURG FIN and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and INGERSOLL 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 INGERSOLL RAND LUXEMBOURG FIN 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 INGERSOLL i.e., INGERSOLL and Meiwu Technology go up and down completely randomly.

Pair Corralation between INGERSOLL and Meiwu Technology

Assuming the 90 days trading horizon INGERSOLL RAND LUXEMBOURG FIN is expected to under-perform the Meiwu Technology. But the bond apears to be less risky and, when comparing its historical volatility, INGERSOLL RAND LUXEMBOURG FIN is 2.8 times less risky than Meiwu Technology. The bond trades about -0.12 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest  82.00  in Meiwu Technology Co on September 19, 2024 and sell it today you would earn a total of  69.00  from holding Meiwu Technology Co or generate 84.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.1%
Values	Daily Returns

INGERSOLL RAND LUXEMBOURG FIN  vs.  Meiwu Technology Co

INGERSOLL RAND LUXEM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INGERSOLL RAND LUXEMBOURG FIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for INGERSOLL RAND LUXEMBOURG FIN investors.

Meiwu Technology

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Meiwu Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INGERSOLL and Meiwu Technology

The main advantage of trading using opposite INGERSOLL and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INGERSOLL 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.

The idea behind INGERSOLL RAND LUXEMBOURG FIN and Meiwu Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.