Correlation Between ALIBABA and Meiwu Technology

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

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

Diversification Opportunities for ALIBABA and Meiwu Technology

-0.36

Correlation Coefficient

ALIBABA  Meiwu Technology

Very good diversification

The 3 months correlation between ALIBABA and Meiwu is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ALIBABA GROUP HLDG and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and ALIBABA 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 ALIBABA GROUP HLDG 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 ALIBABA i.e., ALIBABA and Meiwu Technology go up and down completely randomly.

Pair Corralation between ALIBABA and Meiwu Technology

Assuming the 90 days trading horizon ALIBABA GROUP HLDG is expected to under-perform the Meiwu Technology. But the bond apears to be less risky and, when comparing its historical volatility, ALIBABA GROUP HLDG is 6.22 times less risky than Meiwu Technology. The bond trades about -0.14 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  195.00  in Meiwu Technology Co on June 30, 2025 and sell it today you would lose (11.00) from holding Meiwu Technology Co or give up 5.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	62.5%
Values	Daily Returns

ALIBABA GROUP HLDG  vs.  Meiwu Technology Co

ALIBABA GROUP HLDG

Risk-Adjusted Performance

Weakest

Over the last 90 days ALIBABA GROUP HLDG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ALIBABA GROUP HLDG investors.

Meiwu Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Meiwu Technology may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with ALIBABA and Meiwu Technology

The main advantage of trading using opposite ALIBABA and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALIBABA 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 ALIBABA GROUP HLDG 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.