Correlation Between Oriental Culture and MOGU
Can any of the company-specific risk be diversified away by investing in both Oriental Culture 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 Oriental Culture and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and MOGU Inc, you can compare the effects of market volatilities on Oriental Culture 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 Oriental Culture with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and MOGU.
Diversification Opportunities for Oriental Culture and MOGU
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oriental and MOGU is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Oriental Culture 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 Oriental Culture Holding 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 Oriental Culture i.e., Oriental Culture and MOGU go up and down completely randomly.
Pair Corralation between Oriental Culture and MOGU
Considering the 90-day investment horizon Oriental Culture Holding is expected to generate 1.2 times more return on investment than MOGU. However, Oriental Culture is 1.2 times more volatile than MOGU Inc. It trades about 0.01 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.01 per unit of risk. If you would invest 223.00 in Oriental Culture Holding on August 24, 2024 and sell it today you would lose (95.00) from holding Oriental Culture Holding or give up 42.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Oriental Culture Holding vs. MOGU Inc
Performance |
| Timeline |
| Oriental Culture Holding |
| MOGU Inc |
Oriental Culture and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and MOGU
The main advantage of trading using opposite Oriental Culture and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture 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.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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