Correlation Between Miniso Group and ChargePoint Holdings
Can any of the company-specific risk be diversified away by investing in both Miniso Group and ChargePoint Holdings 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 ChargePoint Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miniso Group HoldingLtd and ChargePoint Holdings, you can compare the effects of market volatilities on Miniso Group and ChargePoint Holdings 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 ChargePoint Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miniso Group and ChargePoint Holdings.
Diversification Opportunities for Miniso Group and ChargePoint Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Miniso and ChargePoint is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Miniso Group HoldingLtd and ChargePoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePoint Holdings 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 HoldingLtd are associated (or correlated) with ChargePoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePoint Holdings has no effect on the direction of Miniso Group i.e., Miniso Group and ChargePoint Holdings go up and down completely randomly.
Pair Corralation between Miniso Group and ChargePoint Holdings
Given the investment horizon of 90 days Miniso Group HoldingLtd is expected to generate 0.67 times more return on investment than ChargePoint Holdings. However, Miniso Group HoldingLtd is 1.48 times less risky than ChargePoint Holdings. It trades about 0.15 of its potential returns per unit of risk. ChargePoint Holdings is currently generating about -0.04 per unit of risk. If you would invest 1,745 in Miniso Group HoldingLtd on March 5, 2024 and sell it today you would earn a total of 504.00 from holding Miniso Group HoldingLtd or generate 28.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Miniso Group HoldingLtd vs. ChargePoint Holdings
Performance |
Timeline |
Miniso Group HoldingLtd |
ChargePoint Holdings |
Miniso Group and ChargePoint Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Miniso Group and ChargePoint Holdings
The main advantage of trading using opposite Miniso Group and ChargePoint Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miniso Group position performs unexpectedly, ChargePoint Holdings 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 ChargePoint Holdings will offset losses from the drop in ChargePoint Holdings' long position.Miniso Group vs. LesliesInc | Miniso Group vs. Sally Beauty Holdings | Miniso Group vs. ODP Corp | Miniso Group vs. 1 800 FLOWERSCOM |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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