Correlation Between IPower and Meiwu Technology

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

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

Diversification Opportunities for IPower and Meiwu Technology

-0.29

Correlation Coefficient

IPower  Meiwu Technology

Very good diversification

The 3 months correlation between IPower and Meiwu is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and IPower 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 iPower Inc 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 IPower i.e., IPower and Meiwu Technology go up and down completely randomly.

Pair Corralation between IPower and Meiwu Technology

Considering the 90-day investment horizon iPower Inc is expected to under-perform the Meiwu Technology. In addition to that, IPower is 2.39 times more volatile than Meiwu Technology Co. It trades about -0.01 of its total potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.09 per unit of volatility. If you would invest  82.00  in Meiwu Technology Co on September 1, 2024 and sell it today you would earn a total of  16.00  from holding Meiwu Technology Co or generate 19.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

iPower Inc  vs.  Meiwu Technology Co

iPower Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iPower Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Meiwu Technology

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 6 (%) 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 IPower and Meiwu Technology

The main advantage of trading using opposite IPower and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPower 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 iPower Inc 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.