Correlation Between Brpr Corporate and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Brpr Corporate 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 Brpr Corporate and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brpr Corporate Offices and Vipshop Holdings Limited, you can compare the effects of market volatilities on Brpr Corporate 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 Brpr Corporate with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brpr Corporate and Vipshop Holdings.
Diversification Opportunities for Brpr Corporate and Vipshop Holdings
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brpr and Vipshop is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Brpr Corporate Offices and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Brpr Corporate 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 Brpr Corporate Offices 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 Brpr Corporate i.e., Brpr Corporate and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Brpr Corporate and Vipshop Holdings
Assuming the 90 days trading horizon Brpr Corporate is expected to generate 4.81 times less return on investment than Vipshop Holdings. But when comparing it to its historical volatility, Brpr Corporate Offices is 2.37 times less risky than Vipshop Holdings. It trades about 0.03 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,450 in Vipshop Holdings Limited on August 30, 2024 and sell it today you would earn a total of 300.00 from holding Vipshop Holdings Limited or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brpr Corporate Offices vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Brpr Corporate Offices |
| Vipshop Holdings |
Brpr Corporate and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brpr Corporate and Vipshop Holdings
The main advantage of trading using opposite Brpr Corporate and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brpr Corporate 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.| Brpr Corporate vs. Taiwan Semiconductor Manufacturing | Brpr Corporate vs. Alibaba Group Holding | Brpr Corporate vs. Microsoft | Brpr Corporate vs. Alphabet |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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