Correlation Between Miniso Group and Leslies

Can any of the company-specific risk be diversified away by investing in both Miniso Group and Leslies 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 Leslies 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 Leslies, you can compare the effects of market volatilities on Miniso Group and Leslies 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 Leslies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miniso Group and Leslies.

Diversification Opportunities for Miniso Group and Leslies

-0.71

Correlation Coefficient

Miniso Group  Leslies

Pay attention - limited upside

The 3 months correlation between Miniso and Leslies is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group Holding and Leslies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leslies 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 Leslies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leslies has no effect on the direction of Miniso Group i.e., Miniso Group and Leslies go up and down completely randomly.

Pair Corralation between Miniso Group and Leslies

Given the investment horizon of 90 days Miniso Group Holding is expected to generate 0.77 times more return on investment than Leslies. However, Miniso Group Holding is 1.29 times less risky than Leslies. It trades about 0.13 of its potential returns per unit of risk. Leslies is currently generating about -0.06 per unit of risk. If you would invest  1,754  in Miniso Group Holding on September 29, 2024 and sell it today you would earn a total of  652.00  from holding Miniso Group Holding or generate 37.17% return on investment over 90 days.

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

Miniso Group Holding  vs.  Leslies

Miniso Group Holding

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Miniso Group Holding are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Miniso Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Leslies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leslies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Miniso Group and Leslies

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

The idea behind Miniso Group Holding and Leslies 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.