Correlation Between Vita Coco and ALIBABA
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By analyzing existing cross correlation between Vita Coco and ALIBABA GROUP HLDG, you can compare the effects of market volatilities on Vita Coco and ALIBABA 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 Vita Coco with a short position of ALIBABA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and ALIBABA.
Diversification Opportunities for Vita Coco and ALIBABA
Excellent diversification
The 3 months correlation between Vita and ALIBABA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and ALIBABA GROUP HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBABA GROUP HLDG and Vita Coco 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 Vita Coco are associated (or correlated) with ALIBABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBABA GROUP HLDG has no effect on the direction of Vita Coco i.e., Vita Coco and ALIBABA go up and down completely randomly.
Pair Corralation between Vita Coco and ALIBABA
Given the investment horizon of 90 days Vita Coco is expected to generate 3.12 times more return on investment than ALIBABA. However, Vita Coco is 3.12 times more volatile than ALIBABA GROUP HLDG. It trades about 0.31 of its potential returns per unit of risk. ALIBABA GROUP HLDG is currently generating about -0.19 per unit of risk. If you would invest 2,960 in Vita Coco on August 28, 2024 and sell it today you would earn a total of 631.00 from holding Vita Coco or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Vita Coco vs. ALIBABA GROUP HLDG
Performance |
| Timeline |
| Vita Coco |
| ALIBABA GROUP HLDG |
Vita Coco and ALIBABA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and ALIBABA
The main advantage of trading using opposite Vita Coco and ALIBABA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco position performs unexpectedly, ALIBABA 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 ALIBABA will offset losses from the drop in ALIBABA's long position.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
| ALIBABA vs. AEP TEX INC | ALIBABA vs. US BANK NATIONAL | ALIBABA vs. Omega Healthcare Investors | ALIBABA vs. Zoom Video Communications |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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