Correlation Between MOGU and Wing Yip

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

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

Diversification Opportunities for MOGU and Wing Yip

-0.18

Correlation Coefficient

MOGU  Wing Yip

Good diversification

The 3 months correlation between MOGU and Wing is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food and MOGU 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 MOGU Inc are associated (or correlated) with Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of MOGU i.e., MOGU and Wing Yip go up and down completely randomly.

Pair Corralation between MOGU and Wing Yip

Given the investment horizon of 90 days MOGU is expected to generate 204.41 times less return on investment than Wing Yip. But when comparing it to its historical volatility, MOGU Inc is 30.29 times less risky than Wing Yip. It trades about 0.03 of its potential returns per unit of risk. Wing Yip Food is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Wing Yip Food on October 23, 2024 and sell it today you would earn a total of  520.00  from holding Wing Yip Food or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	7.58%
Values	Daily Returns

MOGU Inc  vs.  Wing Yip Food

MOGU Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MOGU Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, MOGU unveiled solid returns over the last few months and may actually be approaching a breakup point.

Wing Yip Food

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wing Yip Food are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical indicators, Wing Yip reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MOGU and Wing Yip

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

The idea behind MOGU Inc and Wing Yip Food 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.