Correlation Between Meiwu Technology and Service Properties

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

Diversification Opportunities for Meiwu Technology and Service Properties

0.45

Correlation Coefficient

Meiwu Technology  Service Properties

Very weak diversification

The 3 months correlation between Meiwu and Service is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Service Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Properties Trust 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 Service Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Properties Trust has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Service Properties go up and down completely randomly.

Pair Corralation between Meiwu Technology and Service Properties

Considering the 90-day investment horizon Meiwu Technology is expected to generate 17.05 times less return on investment than Service Properties. In addition to that, Meiwu Technology is 1.04 times more volatile than Service Properties Trust. It trades about 0.0 of its total potential returns per unit of risk. Service Properties Trust is currently generating about 0.08 per unit of volatility. If you would invest  216.00  in Service Properties Trust on May 20, 2025 and sell it today you would earn a total of  34.00  from holding Service Properties Trust or generate 15.74% return on investment over 90 days.

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

Meiwu Technology Co  vs.  Service Properties Trust

Meiwu Technology

Risk-Adjusted Performance

Weakest

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 fairly stable basic indicators, Meiwu Technology is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Service Properties Trust

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Service Properties Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Service Properties exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Meiwu Technology and Service Properties

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

The idea behind Meiwu Technology Co and Service Properties Trust 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.