Correlation Between Miniso Group and MarineMax
Can any of the company-specific risk be diversified away by investing in both Miniso Group and MarineMax 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 MarineMax 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 MarineMax, you can compare the effects of market volatilities on Miniso Group and MarineMax 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 MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miniso Group and MarineMax.
Diversification Opportunities for Miniso Group and MarineMax
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Miniso and MarineMax is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group Holding and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax 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 MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of Miniso Group i.e., Miniso Group and MarineMax go up and down completely randomly.
Pair Corralation between Miniso Group and MarineMax
Given the investment horizon of 90 days Miniso Group Holding is expected to generate 1.46 times more return on investment than MarineMax. However, Miniso Group is 1.46 times more volatile than MarineMax. It trades about 0.12 of its potential returns per unit of risk. MarineMax is currently generating about 0.04 per unit of risk. If you would invest 1,664 in Miniso Group Holding on September 4, 2024 and sell it today you would earn a total of 618.00 from holding Miniso Group Holding or generate 37.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Miniso Group Holding vs. MarineMax
Performance |
Timeline |
Miniso Group Holding |
MarineMax |
Miniso Group and MarineMax Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Miniso Group and MarineMax
The main advantage of trading using opposite Miniso Group and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miniso Group position performs unexpectedly, MarineMax 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 MarineMax will offset losses from the drop in MarineMax's long position.Miniso Group vs. PDD Holdings | Miniso Group vs. Alibaba Group Holding | Miniso Group vs. Global E Online | Miniso Group vs. Sea |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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