Correlation Between Aquagold International and Meituan
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Meituan 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 Aquagold International and Meituan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Meituan, you can compare the effects of market volatilities on Aquagold International and Meituan 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 Aquagold International with a short position of Meituan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Meituan.
Diversification Opportunities for Aquagold International and Meituan
0.77 | Correlation Coefficient |
Poor diversification
The 24 months correlation between Aquagold and Meituan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Meituan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan and Aquagold International 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 Aquagold International are associated (or correlated) with Meituan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan has no effect on the direction of Aquagold International i.e., Aquagold International and Meituan go up and down completely randomly.
Pair Corralation between Aquagold International and Meituan
If you would invest 1,403 in Meituan on February 23, 2024 and sell it today you would earn a total of 138.00 from holding Meituan or generate 9.84% return on investment over 90 days.
Time Period | 24 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
Aquagold International vs. Meituan
Performance |
Timeline |
Aquagold International |
Meituan |
Aquagold International and Meituan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquagold International and Meituan
The main advantage of trading using opposite Aquagold International and Meituan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Meituan 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 Meituan will offset losses from the drop in Meituan's long position.Aquagold International vs. National Beverage Corp | Aquagold International vs. Celsius Holdings | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Coca Cola Femsa SAB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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