Correlation Between Coupang LLC and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Fluence Energy 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 Fluence Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Fluence Energy, you can compare the effects of market volatilities on Coupang LLC and Fluence Energy 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 Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Fluence Energy.
Diversification Opportunities for Coupang LLC and Fluence Energy
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and Fluence is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy 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 Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Coupang LLC i.e., Coupang LLC and Fluence Energy go up and down completely randomly.
Pair Corralation between Coupang LLC and Fluence Energy
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.52 times more return on investment than Fluence Energy. However, Coupang LLC is 1.92 times less risky than Fluence Energy. It trades about -0.01 of its potential returns per unit of risk. Fluence Energy is currently generating about -0.05 per unit of risk. If you would invest 2,600 in Coupang LLC on August 30, 2024 and sell it today you would lose (53.00) from holding Coupang LLC or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Fluence Energy
Performance |
| Timeline |
| Coupang LLC |
| Fluence Energy |
Coupang LLC and Fluence Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Fluence Energy
The main advantage of trading using opposite Coupang LLC and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Fluence Energy 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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