Correlation Between MOGU and Newegg Commerce
Can any of the company-specific risk be diversified away by investing in both MOGU and Newegg Commerce 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 Newegg Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Newegg Commerce, you can compare the effects of market volatilities on MOGU and Newegg Commerce 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 Newegg Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Newegg Commerce.
Diversification Opportunities for MOGU and Newegg Commerce
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOGU and Newegg is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Newegg Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newegg Commerce 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 Newegg Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newegg Commerce has no effect on the direction of MOGU i.e., MOGU and Newegg Commerce go up and down completely randomly.
Pair Corralation between MOGU and Newegg Commerce
Given the investment horizon of 90 days MOGU Inc is expected to generate 0.82 times more return on investment than Newegg Commerce. However, MOGU Inc is 1.22 times less risky than Newegg Commerce. It trades about 0.04 of its potential returns per unit of risk. Newegg Commerce is currently generating about 0.0 per unit of risk. If you would invest 178.00 in MOGU Inc on September 12, 2024 and sell it today you would earn a total of 38.00 from holding MOGU Inc or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.89% |
| Values | Daily Returns |
MOGU Inc vs. Newegg Commerce
Performance |
| Timeline |
| MOGU Inc |
| Newegg Commerce |
MOGU and Newegg Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Newegg Commerce
The main advantage of trading using opposite MOGU and Newegg Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Newegg Commerce 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 Newegg Commerce will offset losses from the drop in Newegg Commerce's long position.| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
| Newegg Commerce vs. Hour Loop | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. MOGU Inc | Newegg Commerce vs. Jowell Global |
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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