Correlation Between Jowell Global and MOGU

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

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

Diversification Opportunities for Jowell Global and MOGU

0.22

Correlation Coefficient

Jowell Global  MOGU

Modest diversification

The 3 months correlation between Jowell and MOGU is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jowell Global and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and Jowell Global 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 Jowell Global 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 Jowell Global i.e., Jowell Global and MOGU go up and down completely randomly.

Pair Corralation between Jowell Global and MOGU

Given the investment horizon of 90 days Jowell Global is expected to generate 2.32 times more return on investment than MOGU. However, Jowell Global is 2.32 times more volatile than MOGU Inc. It trades about 0.12 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.02 per unit of risk. If you would invest  92.00  in Jowell Global on September 1, 2024 and sell it today you would earn a total of  221.00  from holding Jowell Global or generate 240.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.62%
Values	Daily Returns

Jowell Global  vs.  MOGU Inc

Jowell Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jowell Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile technical and fundamental indicators, Jowell Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

MOGU Inc

Risk-Adjusted Performance

3 of 100

Insignificant

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

Pair Trading with Jowell Global and MOGU

The main advantage of trading using opposite Jowell Global and MOGU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jowell Global 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 Jowell Global 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.