Correlation Between Weis Markets and Meiwu Technology

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

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

Diversification Opportunities for Weis Markets and Meiwu Technology

0.76

Correlation Coefficient

Weis Markets  Meiwu Technology

Poor diversification

The 3 months correlation between Weis and Meiwu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Weis Markets 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 Weis Markets 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 Weis Markets i.e., Weis Markets and Meiwu Technology go up and down completely randomly.

Pair Corralation between Weis Markets and Meiwu Technology

Considering the 90-day investment horizon Weis Markets is expected to under-perform the Meiwu Technology. But the stock apears to be less risky and, when comparing its historical volatility, Weis Markets is 1.94 times less risky than Meiwu Technology. The stock trades about -0.15 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  210.00  in Meiwu Technology Co on May 5, 2025 and sell it today you would lose (32.00) from holding Meiwu Technology Co or give up 15.24% of portfolio value over 90 days.

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

Weis Markets  vs.  Meiwu Technology Co

Weis Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weis Markets has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Meiwu Technology

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Weis Markets and Meiwu Technology

The main advantage of trading using opposite Weis Markets and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weis Markets 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 Weis Markets 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.