Correlation Between MOGU and Natural Health
Can any of the company-specific risk be diversified away by investing in both MOGU and Natural Health 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 Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Natural Health Trend, you can compare the effects of market volatilities on MOGU and Natural Health 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 Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Natural Health.
Diversification Opportunities for MOGU and Natural Health
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOGU and Natural is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Natural Health Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trend 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 Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trend has no effect on the direction of MOGU i.e., MOGU and Natural Health go up and down completely randomly.
Pair Corralation between MOGU and Natural Health
Given the investment horizon of 90 days MOGU Inc is expected to generate 1.47 times more return on investment than Natural Health. However, MOGU is 1.47 times more volatile than Natural Health Trend. It trades about 0.01 of its potential returns per unit of risk. Natural Health Trend is currently generating about -0.05 per unit of risk. If you would invest 215.00 in MOGU Inc on August 27, 2024 and sell it today you would lose (2.00) from holding MOGU Inc or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOGU Inc vs. Natural Health Trend
Performance |
| Timeline |
| MOGU Inc |
| Natural Health Trend |
MOGU and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Natural Health
The main advantage of trading using opposite MOGU and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
| Natural Health vs. Inter Parfums | Natural Health vs. European Wax Center | Natural Health vs. Yatsen Holding | Natural Health vs. Edgewell Personal Care |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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