Correlation Between Miniso Group and Yatsen Holding
Can any of the company-specific risk be diversified away by investing in both Miniso Group and Yatsen Holding 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 Yatsen Holding 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 Yatsen Holding, you can compare the effects of market volatilities on Miniso Group and Yatsen Holding 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 Yatsen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miniso Group and Yatsen Holding.
Diversification Opportunities for Miniso Group and Yatsen Holding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Miniso and Yatsen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group Holding and Yatsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatsen Holding 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 Yatsen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatsen Holding has no effect on the direction of Miniso Group i.e., Miniso Group and Yatsen Holding go up and down completely randomly.
Pair Corralation between Miniso Group and Yatsen Holding
Given the investment horizon of 90 days Miniso Group Holding is expected to under-perform the Yatsen Holding. In addition to that, Miniso Group is 1.21 times more volatile than Yatsen Holding. It trades about -0.16 of its total potential returns per unit of risk. Yatsen Holding is currently generating about 0.33 per unit of volatility. If you would invest 370.00 in Yatsen Holding on August 28, 2024 and sell it today you would earn a total of 83.00 from holding Yatsen Holding or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Miniso Group Holding vs. Yatsen Holding
Performance |
| Timeline |
| Miniso Group Holding |
| Yatsen Holding |
Miniso Group and Yatsen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miniso Group and Yatsen Holding
The main advantage of trading using opposite Miniso Group and Yatsen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miniso Group position performs unexpectedly, Yatsen Holding 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 Yatsen Holding will offset losses from the drop in Yatsen Holding's long position.| Miniso Group vs. Leslies | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
| Yatsen Holding vs. 17 Education Technology | Yatsen Holding vs. Ke Holdings | Yatsen Holding vs. Miniso Group Holding | Yatsen Holding vs. Dada Nexus |
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 Stocks Directory module to find actively traded stocks across global markets.
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