Correlation Between Vipshop Holdings and Cbd Of
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and Cbd Of 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 Vipshop Holdings and Cbd Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vipshop Holdings Limited and Cbd of Denver, you can compare the effects of market volatilities on Vipshop Holdings and Cbd Of 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 Vipshop Holdings with a short position of Cbd Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and Cbd Of.
Diversification Opportunities for Vipshop Holdings and Cbd Of
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vipshop and Cbd is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and Cbd of Denver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cbd of Denver and Vipshop 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 Vipshop Holdings Limited are associated (or correlated) with Cbd Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cbd of Denver has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and Cbd Of go up and down completely randomly.
Pair Corralation between Vipshop Holdings and Cbd Of
Given the investment horizon of 90 days Vipshop Holdings Limited is expected to under-perform the Cbd Of. But the stock apears to be less risky and, when comparing its historical volatility, Vipshop Holdings Limited is 5.25 times less risky than Cbd Of. The stock trades about -0.03 of its potential returns per unit of risk. The Cbd of Denver is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.08 in Cbd of Denver on September 1, 2024 and sell it today you would lose (0.05) from holding Cbd of Denver or give up 62.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vipshop Holdings Limited vs. Cbd of Denver
Performance |
| Timeline |
| Vipshop Holdings |
| Cbd of Denver |
Vipshop Holdings and Cbd Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vipshop Holdings and Cbd Of
The main advantage of trading using opposite Vipshop Holdings and Cbd Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, Cbd Of 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 Cbd Of will offset losses from the drop in Cbd Of's long position.| Vipshop Holdings vs. PDD Holdings | Vipshop Holdings vs. JD Inc Adr | Vipshop Holdings vs. Alibaba Group Holding | Vipshop Holdings vs. Sea |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |