Correlation Between Coupang LLC and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and CaliberCos 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 Coupang LLC and CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and CaliberCos Class A, you can compare the effects of market volatilities on Coupang LLC and CaliberCos 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 Coupang LLC with a short position of CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and CaliberCos.
Diversification Opportunities for Coupang LLC and CaliberCos
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and CaliberCos is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A and Coupang LLC 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 Coupang LLC are associated (or correlated) with CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Coupang LLC i.e., Coupang LLC and CaliberCos go up and down completely randomly.
Pair Corralation between Coupang LLC and CaliberCos
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.35 times more return on investment than CaliberCos. However, Coupang LLC is 2.82 times less risky than CaliberCos. It trades about 0.02 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.02 per unit of risk. If you would invest 2,370 in Coupang LLC on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Coupang LLC or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. CaliberCos Class A
Performance |
| Timeline |
| Coupang LLC |
| CaliberCos Class A |
Coupang LLC and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and CaliberCos
The main advantage of trading using opposite Coupang LLC and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| CaliberCos vs. Contagious Gaming | CaliberCos vs. Newpark Resources | CaliberCos vs. Tritent International Agriculture | CaliberCos vs. Tyson Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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