Correlation Between Coupang LLC and Stagwell
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Stagwell, you can compare the effects of market volatilities on Coupang LLC and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Stagwell.
Diversification Opportunities for Coupang LLC and Stagwell
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coupang and Stagwell is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Coupang LLC i.e., Coupang LLC and Stagwell go up and down completely randomly.
Pair Corralation between Coupang LLC and Stagwell
Given the investment horizon of 90 days Coupang LLC is expected to under-perform the Stagwell. In addition to that, Coupang LLC is 1.24 times more volatile than Stagwell. It trades about -0.02 of its total potential returns per unit of risk. Stagwell is currently generating about 0.35 per unit of volatility. If you would invest 645.00 in Stagwell on August 31, 2024 and sell it today you would earn a total of 146.00 from holding Stagwell or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Stagwell
Performance |
| Timeline |
| Coupang LLC |
| Stagwell |
Coupang LLC and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Stagwell
The main advantage of trading using opposite Coupang LLC and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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