Correlation Between G Willi and Meiwu Technology

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

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

Diversification Opportunities for G Willi and Meiwu Technology

0.88

Correlation Coefficient

G Willi  Meiwu Technology

Very poor diversification

The 3 months correlation between WILC and Meiwu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and G Willi 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 G Willi Food International 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 G Willi i.e., G Willi and Meiwu Technology go up and down completely randomly.

Pair Corralation between G Willi and Meiwu Technology

Given the investment horizon of 90 days G Willi Food International is expected to under-perform the Meiwu Technology. But the stock apears to be less risky and, when comparing its historical volatility, G Willi Food International is 6.21 times less risky than Meiwu Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  335.00  in Meiwu Technology Co on February 3, 2025 and sell it today you would lose (112.00) from holding Meiwu Technology Co or give up 33.43% of portfolio value over 90 days.

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

G Willi Food International  vs.  Meiwu Technology Co

G Willi Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Willi Food International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, G Willi is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 fairly uncertain basic indicators, Meiwu Technology may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with G Willi and Meiwu Technology

The main advantage of trading using opposite G Willi and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi 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 G Willi Food International 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.