Correlation Between Coupang LLC and Mosaic
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Mosaic 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 Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and The Mosaic, you can compare the effects of market volatilities on Coupang LLC and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Mosaic.
Diversification Opportunities for Coupang LLC and Mosaic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coupang and Mosaic is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Coupang LLC i.e., Coupang LLC and Mosaic go up and down completely randomly.
Pair Corralation between Coupang LLC and Mosaic
Given the investment horizon of 90 days Coupang LLC is expected to generate 1.3 times more return on investment than Mosaic. However, Coupang LLC is 1.3 times more volatile than The Mosaic. It trades about 0.01 of its potential returns per unit of risk. The Mosaic is currently generating about -0.02 per unit of risk. If you would invest 2,540 in Coupang LLC on September 2, 2024 and sell it today you would lose (4.00) from holding Coupang LLC or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. The Mosaic
Performance |
| Timeline |
| Coupang LLC |
| Mosaic |
Coupang LLC and Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Mosaic
The main advantage of trading using opposite Coupang LLC and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's long position.| Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding | Coupang LLC vs. Sea |
| Mosaic vs. CF Industries Holdings | Mosaic vs. American Vanguard | Mosaic vs. Intrepid Potash | Mosaic vs. Nutrien |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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