Correlation Between MOGU and Jd
Can any of the company-specific risk be diversified away by investing in both MOGU and Jd 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 MOGU and Jd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Jd Com Inc, you can compare the effects of market volatilities on MOGU and Jd 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 MOGU with a short position of Jd. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Jd.
Diversification Opportunities for MOGU and Jd
Poor diversification
The 3 months correlation between MOGU and Jd is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Jd Com Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jd Com Inc and MOGU 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 MOGU Inc are associated (or correlated) with Jd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jd Com Inc has no effect on the direction of MOGU i.e., MOGU and Jd go up and down completely randomly.
Pair Corralation between MOGU and Jd
Given the investment horizon of 90 days MOGU Inc is expected to generate 1.24 times more return on investment than Jd. However, MOGU is 1.24 times more volatile than Jd Com Inc. It trades about 0.02 of its potential returns per unit of risk. Jd Com Inc is currently generating about 0.02 per unit of risk. If you would invest 249.00 in MOGU Inc on August 31, 2024 and sell it today you would lose (27.00) from holding MOGU Inc or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
MOGU Inc vs. Jd Com Inc
Performance |
| Timeline |
| MOGU Inc |
| Jd Com Inc |
MOGU and Jd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Jd
The main advantage of trading using opposite MOGU and Jd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Jd 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 Jd will offset losses from the drop in Jd's long position.| 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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