Correlation Between Leslies and Miniso Group
Can any of the company-specific risk be diversified away by investing in both Leslies and Miniso Group 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 Leslies and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leslies and Miniso Group Holding, you can compare the effects of market volatilities on Leslies and Miniso Group 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 Leslies with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leslies and Miniso Group.
Diversification Opportunities for Leslies and Miniso Group
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leslies and Miniso is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Leslies and Miniso Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group Holding and Leslies 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 Leslies are associated (or correlated) with Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group Holding has no effect on the direction of Leslies i.e., Leslies and Miniso Group go up and down completely randomly.
Pair Corralation between Leslies and Miniso Group
Given the investment horizon of 90 days Leslies is expected to under-perform the Miniso Group. In addition to that, Leslies is 1.36 times more volatile than Miniso Group Holding. It trades about -0.04 of its total potential returns per unit of risk. Miniso Group Holding is currently generating about 0.04 per unit of volatility. If you would invest 1,479 in Miniso Group Holding on November 9, 2024 and sell it today you would earn a total of 810.00 from holding Miniso Group Holding or generate 54.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leslies vs. Miniso Group Holding
Performance |
| Timeline |
| Leslies |
| Miniso Group Holding |
Leslies and Miniso Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leslies and Miniso Group
The main advantage of trading using opposite Leslies and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leslies position performs unexpectedly, Miniso Group 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 Miniso Group will offset losses from the drop in Miniso Group's long position.| Leslies vs. Sally Beauty Holdings | Leslies vs. ODP Corp | Leslies vs. 1 800 FLOWERSCOM | Leslies vs. Caseys General Stores |
| Miniso Group vs. Leslies | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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