Correlation Between Enjoei SA and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Enjoei SA 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 Enjoei SA and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enjoei SA and Vipshop Holdings Limited, you can compare the effects of market volatilities on Enjoei SA 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 Enjoei SA with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enjoei SA and Vipshop Holdings.
Diversification Opportunities for Enjoei SA and Vipshop Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enjoei and Vipshop is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enjoei SA and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Enjoei SA 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 Enjoei SA 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 Enjoei SA i.e., Enjoei SA and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Enjoei SA and Vipshop Holdings
Assuming the 90 days trading horizon Enjoei SA is expected to under-perform the Vipshop Holdings. In addition to that, Enjoei SA is 1.64 times more volatile than Vipshop Holdings Limited. It trades about -0.03 of its total potential returns per unit of risk. Vipshop Holdings Limited is currently generating about -0.03 per unit of volatility. If you would invest 4,673 in Vipshop Holdings Limited on August 27, 2024 and sell it today you would lose (847.00) from holding Vipshop Holdings Limited or give up 18.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Enjoei SA vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Enjoei SA |
| Vipshop Holdings |
Enjoei SA and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enjoei SA and Vipshop Holdings
The main advantage of trading using opposite Enjoei SA and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enjoei SA 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.| Enjoei SA vs. Mliuz SA | Enjoei SA vs. Neogrid Participaes SA | Enjoei SA vs. Locaweb Servios de | Enjoei SA vs. Pet Center Comrcio |
| Vipshop Holdings vs. Brpr Corporate Offices | Vipshop Holdings vs. STMicroelectronics NV | Vipshop Holdings vs. Charter Communications | Vipshop Holdings vs. Electronic Arts |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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