Correlation Between MOGU and Revolve Group
Can any of the company-specific risk be diversified away by investing in both MOGU and Revolve Group 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 Revolve Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Revolve Group LLC, you can compare the effects of market volatilities on MOGU and Revolve Group 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 Revolve Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Revolve Group.
Diversification Opportunities for MOGU and Revolve Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MOGU and Revolve is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Revolve Group LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revolve Group LLC 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 Revolve Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revolve Group LLC has no effect on the direction of MOGU i.e., MOGU and Revolve Group go up and down completely randomly.
Pair Corralation between MOGU and Revolve Group
Given the investment horizon of 90 days MOGU Inc is expected to under-perform the Revolve Group. In addition to that, MOGU is 1.09 times more volatile than Revolve Group LLC. It trades about -0.01 of its total potential returns per unit of risk. Revolve Group LLC is currently generating about 0.16 per unit of volatility. If you would invest 1,659 in Revolve Group LLC on September 13, 2024 and sell it today you would earn a total of 2,114 from holding Revolve Group LLC or generate 127.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOGU Inc vs. Revolve Group LLC
Performance |
| Timeline |
| MOGU Inc |
| Revolve Group LLC |
MOGU and Revolve Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Revolve Group
The main advantage of trading using opposite MOGU and Revolve Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Revolve Group 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 Revolve Group will offset losses from the drop in Revolve Group's long position.| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
| Revolve Group vs. Capri Holdings | Revolve Group vs. Movado Group | Revolve Group vs. Tapestry | Revolve Group vs. Brilliant Earth Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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