Correlation Between MagnaChip Semiconductor and MOGU

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

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

Diversification Opportunities for MagnaChip Semiconductor and MOGU

-0.07

Correlation Coefficient

MagnaChip Semiconductor  MOGU

Good diversification

The 3 months correlation between MagnaChip and MOGU is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and MOGU go up and down completely randomly.

Pair Corralation between MagnaChip Semiconductor and MOGU

Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to generate 0.84 times more return on investment than MOGU. However, MagnaChip Semiconductor is 1.19 times less risky than MOGU. It trades about 0.06 of its potential returns per unit of risk. MOGU Inc is currently generating about -0.03 per unit of risk. If you would invest  377.00  in MagnaChip Semiconductor on December 19, 2024 and sell it today you would earn a total of  34.00  from holding MagnaChip Semiconductor or generate 9.02% return on investment over 90 days.

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

MagnaChip Semiconductor  vs.  MOGU Inc

MagnaChip Semiconductor

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MagnaChip Semiconductor are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, MagnaChip Semiconductor may actually be approaching a critical reversion point that can send shares even higher in April 2025.

MOGU Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOGU Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with MagnaChip Semiconductor and MOGU

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

Check out your portfolio center.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.