Correlation Between Coupang LLC and Lord Global
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Lord Global 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 Lord Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Lord Global Corp, you can compare the effects of market volatilities on Coupang LLC and Lord Global 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 Lord Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Lord Global.
Diversification Opportunities for Coupang LLC and Lord Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coupang and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Lord Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Global Corp 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 Lord Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Global Corp has no effect on the direction of Coupang LLC i.e., Coupang LLC and Lord Global go up and down completely randomly.
Pair Corralation between Coupang LLC and Lord Global
Given the investment horizon of 90 days Coupang LLC is expected to generate 3.55 times less return on investment than Lord Global. But when comparing it to its historical volatility, Coupang LLC is 3.81 times less risky than Lord Global. It trades about 0.1 of its potential returns per unit of risk. Lord Global Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Lord Global Corp on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Lord Global Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 49.19% |
| Values | Daily Returns |
Coupang LLC vs. Lord Global Corp
Performance |
| Timeline |
| Coupang LLC |
| Lord Global Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coupang LLC and Lord Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Lord Global
The main advantage of trading using opposite Coupang LLC and Lord Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Lord Global 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 Lord Global will offset losses from the drop in Lord Global's long position.| Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding | Coupang LLC vs. Sea |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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