Correlation Between Meiwu Technology and Koss

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

Diversification Opportunities for Meiwu Technology and Koss

-0.48

Correlation Coefficient

Meiwu Technology  Koss

Very good diversification

The 3 months correlation between Meiwu and Koss is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss 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 Koss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koss has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Koss go up and down completely randomly.

Pair Corralation between Meiwu Technology and Koss

Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Koss. But the stock apears to be less risky and, when comparing its historical volatility, Meiwu Technology Co is 1.17 times less risky than Koss. The stock trades about -0.05 of its potential returns per unit of risk. The Koss Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  474.00  in Koss Corporation on May 4, 2025 and sell it today you would earn a total of  65.00  from holding Koss Corporation or generate 13.71% return on investment over 90 days.

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

Meiwu Technology Co  vs.  Koss Corp.

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.

Koss

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Koss unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Meiwu Technology and Koss

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

The idea behind Meiwu Technology Co and Koss Corporation 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.