Correlation Between NYSE Composite and MOGU
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and MOGU 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 NYSE Composite and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and MOGU Inc, you can compare the effects of market volatilities on NYSE Composite and MOGU 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 NYSE Composite with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MOGU.
Diversification Opportunities for NYSE Composite and MOGU
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and MOGU is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and NYSE Composite 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 NYSE Composite are associated (or correlated) with MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of NYSE Composite i.e., NYSE Composite and MOGU go up and down completely randomly.
Pair Corralation between NYSE Composite and MOGU
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.79 times less return on investment than MOGU. But when comparing it to its historical volatility, NYSE Composite is 7.92 times less risky than MOGU. It trades about 0.11 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 206.00 in MOGU Inc on November 9, 2024 and sell it today you would earn a total of 41.00 from holding MOGU Inc or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.5% |
| Values | Daily Returns |
NYSE Composite vs. MOGU Inc
Performance |
| Timeline |
NYSE Composite and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MOGU Inc
Pair trading matchups for MOGU
Pair Trading with NYSE Composite and MOGU
The main advantage of trading using opposite NYSE Composite and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, MOGU 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 MOGU will offset losses from the drop in MOGU's long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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