Correlation Between GreenTree Hospitality and MOGU

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

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

Diversification Opportunities for GreenTree Hospitality and MOGU

-0.09

Correlation Coefficient

GreenTree Hospitality  MOGU

Good diversification

The 3 months correlation between GreenTree and MOGU is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc and GreenTree Hospitality 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 GreenTree Hospitality Group are associated (or correlated) with MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and MOGU go up and down completely randomly.

Pair Corralation between GreenTree Hospitality and MOGU

Considering the 90-day investment horizon GreenTree Hospitality is expected to generate 26.52 times less return on investment than MOGU. But when comparing it to its historical volatility, GreenTree Hospitality Group is 6.46 times less risky than MOGU. It trades about 0.04 of its potential returns per unit of risk. MOGU Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  230.00  in MOGU Inc on June 28, 2025 and sell it today you would earn a total of  94.00  from holding MOGU Inc or generate 40.87% return on investment over 90 days.

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

GreenTree Hospitality Group  vs.  MOGU Inc

GreenTree Hospitality

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in GreenTree Hospitality Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical indicators, GreenTree Hospitality may actually be approaching a critical reversion point that can send shares even higher in October 2025.

MOGU Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MOGU Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively sluggish technical and fundamental indicators, MOGU unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GreenTree Hospitality and MOGU

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

The idea behind GreenTree Hospitality Group and MOGU Inc 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.