Correlation Between Stratasys and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Coupang LLC, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Coupang LLC.
Diversification Opportunities for Stratasys and Coupang LLC
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stratasys and Coupang is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Coupang LLC go up and down completely randomly.
Pair Corralation between Stratasys and Coupang LLC
Given the investment horizon of 90 days Stratasys is expected to under-perform the Coupang LLC. In addition to that, Stratasys is 1.9 times more volatile than Coupang LLC. It trades about -0.19 of its total potential returns per unit of risk. Coupang LLC is currently generating about -0.2 per unit of volatility. If you would invest 2,372 in Coupang LLC on October 11, 2024 and sell it today you would lose (144.00) from holding Coupang LLC or give up 6.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Coupang LLC
Performance |
| Timeline |
| Stratasys |
| Coupang LLC |
Stratasys and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Coupang LLC
The main advantage of trading using opposite Stratasys and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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