Correlation Between Meiwu Technology and ATRenew

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

Diversification Opportunities for Meiwu Technology and ATRenew

0.59

Correlation Coefficient

Meiwu Technology  ATRenew

Very weak diversification

The 3 months correlation between Meiwu and ATRenew is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC 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 ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and ATRenew go up and down completely randomly.

Pair Corralation between Meiwu Technology and ATRenew

Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.9 times more return on investment than ATRenew. However, Meiwu Technology Co is 1.12 times less risky than ATRenew. It trades about 0.25 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.1 per unit of risk. If you would invest  84.00  in Meiwu Technology Co on September 17, 2024 and sell it today you would earn a total of  77.00  from holding Meiwu Technology Co or generate 91.67% return on investment over 90 days.

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

Meiwu Technology Co  vs.  ATRenew Inc DRC

Meiwu Technology

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 20 (%) 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.

ATRenew Inc DRC

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATRenew Inc DRC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, ATRenew exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Meiwu Technology and ATRenew

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

The idea behind Meiwu Technology Co and ATRenew Inc DRC 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 CEOs Directory module to screen CEOs from public companies around the world.