Correlation Between Etsy and Mogu Inc

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Etsy and Mogu Inc 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 Etsy and Mogu Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Etsy Inc and Mogu Inc ADR, you can compare the effects of market volatilities on Etsy and Mogu Inc 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 Etsy with a short position of Mogu Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etsy and Mogu Inc.

Diversification Opportunities for Etsy and Mogu Inc

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Etsy and Mogu Inc is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Etsy Inc and Mogu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogu Inc ADR and Etsy 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 Etsy Inc are associated (or correlated) with Mogu Inc. 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 ADR has no effect on the direction of Etsy i.e., Etsy and Mogu Inc go up and down completely randomly.

Pair Corralation between Etsy and Mogu Inc

Given the investment horizon of 90 days Etsy Inc is expected to generate 0.57 times more return on investment than Mogu Inc. However, Etsy Inc is 1.76 times less risky than Mogu Inc. It trades about 0.4 of its potential returns per unit of risk. Mogu Inc ADR is currently generating about -0.02 per unit of risk. If you would invest  8,607  in Etsy Inc on May 10, 2022 and sell it today you would earn a total of  2,591  from holding Etsy Inc or generate 30.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Etsy Inc  vs.  Mogu Inc ADR

 Performance (%) 
       Timeline  
Etsy Inc 
Etsy Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Etsy Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Etsy showed solid returns over the last few months and may actually be approaching a breakup point.

Etsy Price Channel

Mogu Inc ADR 
Mogu Inc Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Mogu Inc ADR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, Mogu Inc unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mogu Inc Price Channel

Etsy and Mogu Inc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Etsy and Mogu Inc

The main advantage of trading using opposite Etsy and Mogu Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etsy position performs unexpectedly, Mogu Inc 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 Inc will offset losses from the drop in Mogu Inc's long position.
The idea behind Etsy Inc and Mogu Inc ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go