Correlation Between Coupang LLC and 437076BM3

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and 437076BM3 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 437076BM3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and HOME DEPOT INC, you can compare the effects of market volatilities on Coupang LLC and 437076BM3 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 437076BM3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and 437076BM3.

Diversification Opportunities for Coupang LLC and 437076BM3

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between Coupang and 437076BM3 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and HOME DEPOT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT INC 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 437076BM3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT INC has no effect on the direction of Coupang LLC i.e., Coupang LLC and 437076BM3 go up and down completely randomly.

Pair Corralation between Coupang LLC and 437076BM3

Given the investment horizon of 90 days Coupang LLC is expected to generate 4.63 times more return on investment than 437076BM3. However, Coupang LLC is 4.63 times more volatile than HOME DEPOT INC. It trades about 0.11 of its potential returns per unit of risk. HOME DEPOT INC is currently generating about -0.06 per unit of risk. If you would invest  2,200  in Coupang LLC on August 31, 2024 and sell it today you would earn a total of  347.00  from holding Coupang LLC or generate 15.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Coupang LLC  vs.  HOME DEPOT INC

 Performance 
       Timeline  
Coupang LLC 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Coupang LLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Coupang LLC reported solid returns over the last few months and may actually be approaching a breakup point.
HOME DEPOT INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HOME DEPOT INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 437076BM3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Coupang LLC and 437076BM3 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Coupang LLC and 437076BM3

The main advantage of trading using opposite Coupang LLC and 437076BM3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, 437076BM3 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 437076BM3 will offset losses from the drop in 437076BM3's long position.
Coupang LLC vs. MercadoLibre
Coupang LLC vs. PDD Holdings
Coupang LLC vs. JD Inc Adr
Coupang LLC vs. Alibaba Group Holding
The idea behind Coupang LLC and HOME DEPOT INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
437076BM3 vs. Air Products and
437076BM3 vs. Chimerix
437076BM3 vs. Genfit
437076BM3 vs. CF Industries 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY