Correlation Between Grocery Outlet and MOGU
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet 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 Grocery Outlet and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grocery Outlet Holding and MOGU Inc, you can compare the effects of market volatilities on Grocery Outlet 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 Grocery Outlet with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and MOGU.
Diversification Opportunities for Grocery Outlet and MOGU
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and MOGU is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Grocery Outlet 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 Grocery Outlet Holding 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 Grocery Outlet i.e., Grocery Outlet and MOGU go up and down completely randomly.
Pair Corralation between Grocery Outlet and MOGU
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the MOGU. But the stock apears to be less risky and, when comparing its historical volatility, Grocery Outlet Holding is 2.13 times less risky than MOGU. The stock trades about -0.03 of its potential returns per unit of risk. The MOGU Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 240.00 in MOGU Inc on November 1, 2024 and sell it today you would earn a total of 7.34 from holding MOGU Inc or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.52% |
| Values | Daily Returns |
Grocery Outlet Holding vs. MOGU Inc
Performance |
| Timeline |
| Grocery Outlet Holding |
| MOGU Inc |
Grocery Outlet and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and MOGU
The main advantage of trading using opposite Grocery Outlet and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet 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.| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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