Correlation Between Meiwu Technology and UOBSP

Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and UOBSP 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 UOBSP 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 UOBSP 3863 07 OCT 32, you can compare the effects of market volatilities on Meiwu Technology and UOBSP 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 UOBSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and UOBSP.

Diversification Opportunities for Meiwu Technology and UOBSP

0.08

Correlation Coefficient

Meiwu Technology  UOBSP

Significant diversification

The 3 months correlation between Meiwu and UOBSP is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and UOBSP 3863 07 OCT 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UOBSP 3863 07 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 UOBSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UOBSP 3863 07 has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and UOBSP go up and down completely randomly.

Pair Corralation between Meiwu Technology and UOBSP

Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the UOBSP. In addition to that, Meiwu Technology is 122.95 times more volatile than UOBSP 3863 07 OCT 32. It trades about -0.12 of its total potential returns per unit of risk. UOBSP 3863 07 OCT 32 is currently generating about 0.02 per unit of volatility. If you would invest  9,690  in UOBSP 3863 07 OCT 32 on October 20, 2024 and sell it today you would earn a total of  3.00  from holding UOBSP 3863 07 OCT 32 or generate 0.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	45.0%
Values	Daily Returns

Meiwu Technology Co  vs.  UOBSP 3863 07 OCT 32

Meiwu Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 2 (%) 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.

UOBSP 3863 07

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UOBSP 3863 07 OCT 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, UOBSP is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Meiwu Technology and UOBSP

The main advantage of trading using opposite Meiwu Technology and UOBSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, UOBSP 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 UOBSP will offset losses from the drop in UOBSP's long position.

The idea behind Meiwu Technology Co and UOBSP 3863 07 OCT 32 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.