Correlation Between MOGU and Yunji

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

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

Diversification Opportunities for MOGU and Yunji

-0.39

Correlation Coefficient

MOGU  Yunji

Very good diversification

The 3 months correlation between MOGU and Yunji is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of MOGU i.e., MOGU and Yunji go up and down completely randomly.

Pair Corralation between MOGU and Yunji

Given the investment horizon of 90 days MOGU Inc is expected to generate 0.84 times more return on investment than Yunji. However, MOGU Inc is 1.19 times less risky than Yunji. It trades about 0.05 of its potential returns per unit of risk. Yunji Inc is currently generating about 0.04 per unit of risk. If you would invest  210.00  in MOGU Inc on December 27, 2024 and sell it today you would earn a total of  17.00  from holding MOGU Inc or generate 8.1% return on investment over 90 days.

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

MOGU Inc  vs.  Yunji Inc

MOGU Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MOGU Inc are ranked lower than 4 (%) 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 April 2025.

Yunji Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yunji Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Yunji may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MOGU and Yunji

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

The idea behind MOGU Inc and Yunji 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..