Correlation Between Bemobi Mobile and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Bemobi Mobile and Vipshop 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 Bemobi Mobile and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bemobi Mobile Tech and Vipshop Holdings Limited, you can compare the effects of market volatilities on Bemobi Mobile and Vipshop 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 Bemobi Mobile with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and Vipshop Holdings.
Diversification Opportunities for Bemobi Mobile and Vipshop Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bemobi and Vipshop is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Bemobi Mobile 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 Bemobi Mobile Tech are associated (or correlated) with Vipshop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vipshop Holdings has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Bemobi Mobile and Vipshop Holdings
Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to generate 1.0 times more return on investment than Vipshop Holdings. However, Bemobi Mobile Tech is 1.0 times less risky than Vipshop Holdings. It trades about -0.2 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about -0.23 per unit of risk. If you would invest 1,562 in Bemobi Mobile Tech on August 31, 2024 and sell it today you would lose (141.00) from holding Bemobi Mobile Tech or give up 9.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bemobi Mobile Tech vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Bemobi Mobile Tech |
| Vipshop Holdings |
Bemobi Mobile and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bemobi Mobile and Vipshop Holdings
The main advantage of trading using opposite Bemobi Mobile and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bemobi Mobile position performs unexpectedly, Vipshop 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 Vipshop Holdings will offset losses from the drop in Vipshop Holdings' long position.| Bemobi Mobile vs. Intelbras SA | Bemobi Mobile vs. Neogrid Participaes SA | Bemobi Mobile vs. Mliuz SA | Bemobi Mobile vs. Locaweb Servios de |
| Vipshop Holdings vs. CVS Health | Vipshop Holdings vs. Automatic Data Processing | Vipshop Holdings vs. Brpr Corporate Offices | Vipshop Holdings vs. Multilaser Industrial SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |