Correlation Between Jeffs Brands and MOGU

Can any of the company-specific risk be diversified away by investing in both Jeffs Brands 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 Jeffs Brands and MOGU into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jeffs Brands and MOGU Inc, you can compare the effects of market volatilities on Jeffs Brands 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 Jeffs Brands with a short position of MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and MOGU.

Diversification Opportunities for Jeffs Brands and MOGU

0.06

Correlation Coefficient

Jeffs Brands  MOGU

Significant diversification

The 3 months correlation between Jeffs and MOGU is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands i.e., Jeffs Brands and MOGU go up and down completely randomly.

Pair Corralation between Jeffs Brands and MOGU

Given the investment horizon of 90 days Jeffs Brands is expected to generate 8.43 times more return on investment than MOGU. However, Jeffs Brands is 8.43 times more volatile than MOGU Inc. It trades about 0.04 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.02 per unit of risk. If you would invest  847.00  in Jeffs Brands on September 3, 2024 and sell it today you would lose (589.00) from holding Jeffs Brands or give up 69.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.59%
Values	Daily Returns

Jeffs Brands  vs.  MOGU Inc

Jeffs Brands

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jeffs Brands are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Jeffs Brands reported solid returns over the last few months and may actually be approaching a breakup point.

MOGU Inc

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MOGU Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, MOGU may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jeffs Brands and MOGU

The main advantage of trading using opposite Jeffs Brands and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands 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.

The idea behind Jeffs Brands and MOGU Inc 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.