Correlation Between Miniso Group and Yatsen Holding

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

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

Diversification Opportunities for Miniso Group and Yatsen Holding

-0.64

Correlation Coefficient

Miniso Group  Yatsen Holding

Excellent diversification

The 3 months correlation between Miniso and Yatsen is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group Holding and Yatsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatsen Holding and Miniso Group 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 Miniso Group Holding are associated (or correlated) with Yatsen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatsen Holding has no effect on the direction of Miniso Group i.e., Miniso Group and Yatsen Holding go up and down completely randomly.

Pair Corralation between Miniso Group and Yatsen Holding

Given the investment horizon of 90 days Miniso Group Holding is expected to under-perform the Yatsen Holding. But the stock apears to be less risky and, when comparing its historical volatility, Miniso Group Holding is 1.4 times less risky than Yatsen Holding. The stock trades about -0.08 of its potential returns per unit of risk. The Yatsen Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  410.00  in Yatsen Holding on December 28, 2024 and sell it today you would earn a total of  90.00  from holding Yatsen Holding or generate 21.95% return on investment over 90 days.

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

Miniso Group Holding  vs.  Yatsen Holding

Miniso Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Miniso Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Yatsen Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yatsen Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Yatsen Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Miniso Group and Yatsen Holding

The main advantage of trading using opposite Miniso Group and Yatsen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miniso Group position performs unexpectedly, Yatsen Holding 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 Yatsen Holding will offset losses from the drop in Yatsen Holding's long position.

The idea behind Miniso Group Holding and Yatsen 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.