Correlation Between Leslies and Miniso Group

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

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

Diversification Opportunities for Leslies and Miniso Group

-0.65

Correlation Coefficient

Leslies  Miniso Group

Excellent diversification

The 3 months correlation between Leslies and Miniso is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Leslies 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 Leslies 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 Leslies 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 Leslies i.e., Leslies and Miniso Group go up and down completely randomly.

Pair Corralation between Leslies and Miniso Group

Given the investment horizon of 90 days Leslies is expected to under-perform the Miniso Group. In addition to that, Leslies is 1.72 times more volatile than Miniso Group Holding. It trades about -0.1 of its total potential returns per unit of risk. Miniso Group Holding is currently generating about 0.29 per unit of volatility. If you would invest  1,770  in Miniso Group Holding on September 19, 2024 and sell it today you would earn a total of  589.00  from holding Miniso Group Holding or generate 33.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Leslies  vs.  Miniso Group Holding

Leslies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leslies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Miniso Group Holding

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Miniso Group Holding are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Miniso Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Leslies and Miniso Group

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

The idea behind Leslies and Miniso Group 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.