Correlation Between Employers Holdings and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Employers Holdings and Coupang LLC 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 Employers Holdings and Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Employers Holdings and Coupang LLC, you can compare the effects of market volatilities on Employers Holdings and Coupang LLC 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 Employers Holdings with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and Coupang LLC.
Diversification Opportunities for Employers Holdings and Coupang LLC
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Employers and Coupang is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and Employers Holdings 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 Employers Holdings are associated (or correlated) with Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Employers Holdings i.e., Employers Holdings and Coupang LLC go up and down completely randomly.
Pair Corralation between Employers Holdings and Coupang LLC
Considering the 90-day investment horizon Employers Holdings is expected to generate 0.67 times more return on investment than Coupang LLC. However, Employers Holdings is 1.49 times less risky than Coupang LLC. It trades about 0.25 of its potential returns per unit of risk. Coupang LLC is currently generating about -0.06 per unit of risk. If you would invest 4,725 in Employers Holdings on August 26, 2024 and sell it today you would earn a total of 600.00 from holding Employers Holdings or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Employers Holdings vs. Coupang LLC
Performance |
| Timeline |
| Employers Holdings |
| Coupang LLC |
Employers Holdings and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and Coupang LLC
The main advantage of trading using opposite Employers Holdings and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| Coupang LLC vs. Sea | Coupang LLC vs. Wayfair | Coupang LLC vs. Chewy Inc | Coupang LLC vs. Vipshop Holdings Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |