Correlation Between MOGU and Yunji
Can any of the company-specific risk be diversified away by investing in both MOGU and Yunji 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 Yunji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOGU Inc and Yunji Inc, you can compare the effects of market volatilities on MOGU and Yunji 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 Yunji. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOGU and Yunji.
Diversification Opportunities for MOGU and Yunji
Weak diversification
The 3 months correlation between MOGU and Yunji is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of MOGU i.e., MOGU and Yunji go up and down completely randomly.
Pair Corralation between MOGU and Yunji
Given the investment horizon of 90 days MOGU Inc is expected to generate 0.73 times more return on investment than Yunji. However, MOGU Inc is 1.36 times less risky than Yunji. It trades about 0.01 of its potential returns per unit of risk. Yunji Inc is currently generating about -0.03 per unit of risk. If you would invest 321.00 in MOGU Inc on August 24, 2024 and sell it today you would lose (108.00) from holding MOGU Inc or give up 33.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
MOGU Inc vs. Yunji Inc
Performance |
| Timeline |
| MOGU Inc |
| Yunji Inc |
MOGU and Yunji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOGU and Yunji
The main advantage of trading using opposite MOGU and Yunji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOGU position performs unexpectedly, Yunji 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 Yunji will offset losses from the drop in Yunji'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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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