Correlation Between PDD Holdings and Miniso Group
Can any of the company-specific risk be diversified away by investing in both PDD Holdings 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 PDD Holdings and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Miniso Group Holding, you can compare the effects of market volatilities on PDD Holdings 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 PDD Holdings with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Miniso Group.
Diversification Opportunities for PDD Holdings and Miniso Group
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PDD and Miniso is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings 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 PDD Holdings 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 PDD Holdings 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 PDD Holdings i.e., PDD Holdings and Miniso Group go up and down completely randomly.
Pair Corralation between PDD Holdings and Miniso Group
Considering the 90-day investment horizon PDD Holdings is expected to under-perform the Miniso Group. But the stock apears to be less risky and, when comparing its historical volatility, PDD Holdings is 1.16 times less risky than Miniso Group. The stock trades about -0.02 of its potential returns per unit of risk. The Miniso Group Holding is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,425 in Miniso Group Holding on September 23, 2024 and sell it today you would lose (91.00) from holding Miniso Group Holding or give up 3.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PDD Holdings vs. Miniso Group Holding
Performance |
Timeline |
PDD Holdings |
Miniso Group Holding |
PDD Holdings and Miniso Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PDD Holdings and Miniso Group
The main advantage of trading using opposite PDD Holdings and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings 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.PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
Miniso Group vs. PDD Holdings | Miniso Group vs. Alibaba Group Holding | Miniso Group vs. Sea | Miniso Group vs. Wayfair |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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