Correlation Between MOGU and Vine Hill
Can any of the company-specific risk be diversified away by investing in both MOGU and Vine Hill 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 Vine Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Vine Hill Capital, you can compare the effects of market volatilities on MOGU and Vine Hill 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 Vine Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Vine Hill.
Diversification Opportunities for MOGU and Vine Hill
Very poor diversification
The 3 months correlation between MOGU and Vine is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Vine Hill Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vine Hill Capital 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 Vine Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vine Hill Capital has no effect on the direction of MOGU i.e., MOGU and Vine Hill go up and down completely randomly.
Pair Corralation between MOGU and Vine Hill
Given the investment horizon of 90 days MOGU Inc is expected to generate 22.41 times more return on investment than Vine Hill. However, MOGU is 22.41 times more volatile than Vine Hill Capital. It trades about 0.23 of its potential returns per unit of risk. Vine Hill Capital is currently generating about 0.08 per unit of risk. If you would invest 223.00 in MOGU Inc on November 3, 2024 and sell it today you would earn a total of 27.00 from holding MOGU Inc or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOGU Inc vs. Vine Hill Capital
Performance |
| Timeline |
| MOGU Inc |
| Vine Hill Capital |
MOGU and Vine Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Vine Hill
The main advantage of trading using opposite MOGU and Vine Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Vine Hill 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 Vine Hill will offset losses from the drop in Vine Hill's long position.| MOGU vs. iPower Inc | MOGU vs. LightInTheBox Holding Co | MOGU vs. Qurate Retail Series | MOGU vs. Kidpik Corp |
| Vine Hill vs. Hertz Global Hldgs | Vine Hill vs. Videolocity International | Vine Hill vs. Vestis | Vine Hill vs. RadNet Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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