Correlation Between Burnham Holdings and MOGU
Can any of the company-specific risk be diversified away by investing in both Burnham Holdings and MOGU 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 Burnham Holdings and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burnham Holdings PFD and MOGU Inc, you can compare the effects of market volatilities on Burnham Holdings and MOGU 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 Burnham Holdings with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burnham Holdings and MOGU.
Diversification Opportunities for Burnham Holdings and MOGU
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Burnham and MOGU is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Burnham Holdings PFD and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Burnham Holdings 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 Burnham Holdings PFD are associated (or correlated) with MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of Burnham Holdings i.e., Burnham Holdings and MOGU go up and down completely randomly.
Pair Corralation between Burnham Holdings and MOGU
Assuming the 90 days horizon Burnham Holdings is expected to generate 9.58 times less return on investment than MOGU. But when comparing it to its historical volatility, Burnham Holdings PFD is 20.63 times less risky than MOGU. It trades about 0.09 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 203.00 in MOGU Inc on November 3, 2024 and sell it today you would earn a total of 47.00 from holding MOGU Inc or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Burnham Holdings PFD vs. MOGU Inc
Performance |
| Timeline |
| Burnham Holdings PFD |
| MOGU Inc |
Burnham Holdings and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burnham Holdings and MOGU
The main advantage of trading using opposite Burnham Holdings and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burnham Holdings position performs unexpectedly, MOGU 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 MOGU will offset losses from the drop in MOGU's long position.| Burnham Holdings vs. Gfl Environmental Holdings | Burnham Holdings vs. Corning Incorporated | Burnham Holdings vs. HUHUTECH International Group | Burnham Holdings vs. Summit Environmental |
| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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