Correlation Between Meiwu Technology and E Home
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and E Home 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 E Home 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 E Home Household Service, you can compare the effects of market volatilities on Meiwu Technology and E Home 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 E Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and E Home.
Diversification Opportunities for Meiwu Technology and E Home
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and EJH is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and E Home Household Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Home Household 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 E Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Home Household has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and E Home go up and down completely randomly.
Pair Corralation between Meiwu Technology and E Home
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 2.15 times more return on investment than E Home. However, Meiwu Technology is 2.15 times more volatile than E Home Household Service. It trades about 0.01 of its potential returns per unit of risk. E Home Household Service is currently generating about -0.23 per unit of risk. If you would invest 180.00 in Meiwu Technology Co on August 13, 2025 and sell it today you would lose (15.00) from holding Meiwu Technology Co or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. E Home Household Service
Performance |
| Timeline |
| Meiwu Technology |
| E Home Household |
Meiwu Technology and E Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and E Home
The main advantage of trading using opposite Meiwu Technology and E Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, E Home 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 E Home will offset losses from the drop in E Home's long position.| Meiwu Technology vs. Nuvve Holding Corp | Meiwu Technology vs. Naas Technology ADR | Meiwu Technology vs. XWELL Inc | Meiwu Technology vs. Cheetah Net Supply |
| E Home vs. Interactive Strength Common | E Home vs. Naas Technology ADR | E Home vs. Jowell Global | E Home vs. XWELL Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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