Correlation Between MOGU and Quhuo
Can any of the company-specific risk be diversified away by investing in both MOGU and Quhuo 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 Quhuo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Quhuo, you can compare the effects of market volatilities on MOGU and Quhuo 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 Quhuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Quhuo.
Diversification Opportunities for MOGU and Quhuo
Average diversification
The 3 months correlation between MOGU and Quhuo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Quhuo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quhuo 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 Quhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quhuo has no effect on the direction of MOGU i.e., MOGU and Quhuo go up and down completely randomly.
Pair Corralation between MOGU and Quhuo
Given the investment horizon of 90 days MOGU is expected to generate 6.04 times less return on investment than Quhuo. But when comparing it to its historical volatility, MOGU Inc is 4.0 times less risky than Quhuo. It trades about 0.04 of its potential returns per unit of risk. Quhuo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Quhuo on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Quhuo or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.87% |
| Values | Daily Returns |
MOGU Inc vs. Quhuo
Performance |
| Timeline |
| MOGU Inc |
| Quhuo |
MOGU and Quhuo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Quhuo
The main advantage of trading using opposite MOGU and Quhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Quhuo 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 Quhuo will offset losses from the drop in Quhuo'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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |