Correlation Between Coupang LLC and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Vipshop Holdings 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 Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Vipshop Holdings Limited, you can compare the effects of market volatilities on Coupang LLC and Vipshop Holdings 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 Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Vipshop Holdings.
Diversification Opportunities for Coupang LLC and Vipshop Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coupang and Vipshop is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings 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 Vipshop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vipshop Holdings has no effect on the direction of Coupang LLC i.e., Coupang LLC and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Coupang LLC and Vipshop Holdings
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.81 times more return on investment than Vipshop Holdings. However, Coupang LLC is 1.23 times less risky than Vipshop Holdings. It trades about 0.04 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest 1,581 in Coupang LLC on January 13, 2025 and sell it today you would earn a total of 584.00 from holding Coupang LLC or generate 36.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Coupang LLC |
| Vipshop Holdings |
Coupang LLC and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Vipshop Holdings
The main advantage of trading using opposite Coupang LLC and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Vipshop Holdings 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 Vipshop Holdings will offset losses from the drop in Vipshop Holdings' long position.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| Vipshop Holdings vs. JD Inc Adr | Vipshop Holdings vs. Alibaba Group Holding | Vipshop Holdings vs. Sea | Vipshop Holdings vs. Jumia Technologies AG |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |