Correlation Between Sui and Moo Deng

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

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

Diversification Opportunities for Sui and Moo Deng

0.28

Correlation Coefficient

Sui  Moo Deng

Modest diversification

The 3 months correlation between Sui and Moo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sui and Moo Deng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moo Deng and Sui 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 Sui are associated (or correlated) with Moo Deng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moo Deng has no effect on the direction of Sui i.e., Sui and Moo Deng go up and down completely randomly.

Pair Corralation between Sui and Moo Deng

Assuming the 90 days trading horizon Sui is expected to generate 16.96 times less return on investment than Moo Deng. But when comparing it to its historical volatility, Sui is 4.17 times less risky than Moo Deng. It trades about 0.04 of its potential returns per unit of risk. Moo Deng is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  4.87  in Moo Deng on April 25, 2025 and sell it today you would earn a total of  15.13  from holding Moo Deng or generate 310.68% return on investment over 90 days.

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

Sui  vs.  Moo Deng

Sui

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sui are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Sui exhibited solid returns over the last few months and may actually be approaching a breakup point.

Moo Deng

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moo Deng are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Moo Deng reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sui and Moo Deng

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

The idea behind Sui and Moo Deng 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.