Correlation Between Miniso Group and 17 Education
Can any of the company-specific risk be diversified away by investing in both Miniso Group and 17 Education 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 Miniso Group and 17 Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miniso Group Holding and 17 Education Technology, you can compare the effects of market volatilities on Miniso Group and 17 Education 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 Miniso Group with a short position of 17 Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miniso Group and 17 Education.
Diversification Opportunities for Miniso Group and 17 Education
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Miniso and 17 Education is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group Holding and 17 Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 17 Education Technology and Miniso Group 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 Miniso Group Holding are associated (or correlated) with 17 Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 17 Education Technology has no effect on the direction of Miniso Group i.e., Miniso Group and 17 Education go up and down completely randomly.
Pair Corralation between Miniso Group and 17 Education
Given the investment horizon of 90 days Miniso Group Holding is expected to under-perform the 17 Education. In addition to that, Miniso Group is 1.22 times more volatile than 17 Education Technology. It trades about -0.03 of its total potential returns per unit of risk. 17 Education Technology is currently generating about 0.01 per unit of volatility. If you would invest 201.00 in 17 Education Technology on August 30, 2024 and sell it today you would earn a total of 0.00 from holding 17 Education Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miniso Group Holding vs. 17 Education Technology
Performance |
| Timeline |
| Miniso Group Holding |
| 17 Education Technology |
Miniso Group and 17 Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miniso Group and 17 Education
The main advantage of trading using opposite Miniso Group and 17 Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miniso Group position performs unexpectedly, 17 Education 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 17 Education will offset losses from the drop in 17 Education's long position.| Miniso Group vs. Leslies | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
| 17 Education vs. Sunlands Technology Group | 17 Education vs. Ihuman Inc | 17 Education vs. Gaotu Techedu DRC | 17 Education vs. New Oriental Education |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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