Correlation Between Figs and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Figs 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 Figs and Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and Coupang LLC, you can compare the effects of market volatilities on Figs 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 Figs with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and Coupang LLC.
Diversification Opportunities for Figs and Coupang LLC
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Figs and Coupang is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and Figs 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 Figs Inc 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 Figs i.e., Figs and Coupang LLC go up and down completely randomly.
Pair Corralation between Figs and Coupang LLC
Given the investment horizon of 90 days Figs Inc is expected to under-perform the Coupang LLC. In addition to that, Figs is 1.24 times more volatile than Coupang LLC. It trades about -0.03 of its total potential returns per unit of risk. Coupang LLC is currently generating about 0.21 per unit of volatility. If you would invest 2,315 in Coupang LLC on November 29, 2024 and sell it today you would earn a total of 186.00 from holding Coupang LLC or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figs Inc vs. Coupang LLC
Performance |
| Timeline |
| Figs Inc |
| Coupang LLC |
Figs and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and Coupang LLC
The main advantage of trading using opposite Figs and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs 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.The idea behind Figs Inc and Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |