Correlation Between Mogu Inc and AKA Brands

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

Diversification Opportunities for Mogu Inc and AKA Brands

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Mogu Inc and AKA Brands is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mogu Inc ADR and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands Holding and Mogu Inc 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 ADR are associated (or correlated) with AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of Mogu Inc i.e., Mogu Inc and AKA Brands go up and down completely randomly.

Pair Corralation between Mogu Inc and AKA Brands

Given the investment horizon of 90 days Mogu Inc ADR is expected to generate 1.21 times more return on investment than AKA Brands. However, Mogu Inc is 1.21 times more volatile than AKA Brands Holding. It trades about 0.15 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.31 per unit of risk. If you would invest  205.00  in Mogu Inc ADR on April 1, 2022 and sell it today you would earn a total of  29.00  from holding Mogu Inc ADR or generate 14.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Mogu Inc ADR  vs.  AKA Brands Holding

 Performance (%) 
      Timeline 
Mogu Inc ADR 
Mogu Inc Performance
0 of 100
Over the last 90 days Mogu Inc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in July 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Structure and Payout Changes

Last Split Factor
1:12
Last Split Date
2022-03-28

Mogu Inc Price Channel

AKA Brands Holding 
AKA Brands Performance
0 of 100
Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Last Split Factor
1:1
Last Split Date
2010-03-30

AKA Brands Price Channel

Mogu Inc and AKA Brands Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Mogu Inc and AKA Brands

The main advantage of trading using opposite Mogu Inc and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mogu Inc position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.
The idea behind Mogu Inc ADR and AKA Brands Holding 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go