Correlation Between Aterian and Miniso Group
Can any of the company-specific risk be diversified away by investing in both Aterian and Miniso Group 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 Aterian and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aterian and Miniso Group Holding, you can compare the effects of market volatilities on Aterian and Miniso Group 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 Aterian with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and Miniso Group.
Diversification Opportunities for Aterian and Miniso Group
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aterian and Miniso is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and Miniso Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group Holding and Aterian 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 Aterian are associated (or correlated) with Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group Holding has no effect on the direction of Aterian i.e., Aterian and Miniso Group go up and down completely randomly.
Pair Corralation between Aterian and Miniso Group
Given the investment horizon of 90 days Aterian is expected to under-perform the Miniso Group. But the stock apears to be less risky and, when comparing its historical volatility, Aterian is 2.03 times less risky than Miniso Group. The stock trades about -0.29 of its potential returns per unit of risk. The Miniso Group Holding is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Miniso Group Holding on September 24, 2024 and sell it today you would earn a total of 711.50 from holding Miniso Group Holding or generate 42.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aterian vs. Miniso Group Holding
Performance |
Timeline |
Aterian |
Miniso Group Holding |
Aterian and Miniso Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aterian and Miniso Group
The main advantage of trading using opposite Aterian and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aterian position performs unexpectedly, Miniso Group 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 Miniso Group will offset losses from the drop in Miniso Group's long position.Aterian vs. Sphere 3D Corp | Aterian vs. Katapult Holdings | Aterian vs. Aquagold International | Aterian vs. Morningstar Unconstrained Allocation |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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