Correlation Between Meiwu Technology and ScanSource

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

Diversification Opportunities for Meiwu Technology and ScanSource

0.15

Correlation Coefficient

Meiwu Technology  ScanSource

Average diversification

The 3 months correlation between Meiwu and ScanSource is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and ScanSource go up and down completely randomly.

Pair Corralation between Meiwu Technology and ScanSource

Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the ScanSource. But the stock apears to be less risky and, when comparing its historical volatility, Meiwu Technology Co is 1.29 times less risky than ScanSource. The stock trades about -0.05 of its potential returns per unit of risk. The ScanSource is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  4,113  in ScanSource on May 27, 2025 and sell it today you would earn a total of  320.50  from holding ScanSource or generate 7.79% return on investment over 90 days.

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

Meiwu Technology Co  vs.  ScanSource

Meiwu Technology

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 4 (%) 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 September 2025.

ScanSource

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ScanSource are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, ScanSource may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Meiwu Technology and ScanSource

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

The idea behind Meiwu Technology Co and ScanSource 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.