Correlation Between Roma Green and MOGU
Can any of the company-specific risk be diversified away by investing in both Roma Green 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 Roma Green and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roma Green Finance and MOGU Inc, you can compare the effects of market volatilities on Roma Green 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 Roma Green with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roma Green and MOGU.
Diversification Opportunities for Roma Green and MOGU
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roma and MOGU is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Roma Green Finance and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Roma Green 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 Roma Green Finance 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 Roma Green i.e., Roma Green and MOGU go up and down completely randomly.
Pair Corralation between Roma Green and MOGU
Given the investment horizon of 90 days Roma Green Finance is expected to generate 1.97 times more return on investment than MOGU. However, Roma Green is 1.97 times more volatile than MOGU Inc. It trades about 0.09 of its potential returns per unit of risk. MOGU Inc is currently generating about -0.22 per unit of risk. If you would invest 68.00 in Roma Green Finance on December 8, 2024 and sell it today you would earn a total of 7.00 from holding Roma Green Finance or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roma Green Finance vs. MOGU Inc
Performance |
| Timeline |
| Roma Green Finance |
| MOGU Inc |
Roma Green and MOGU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roma Green and MOGU
The main advantage of trading using opposite Roma Green and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roma Green 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.| Roma Green vs. HUTCHMED DRC | ||
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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