Correlation Between Vipshop Holdings and WISH Old
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and WISH Old 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 WISH Old 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 WISH Old, you can compare the effects of market volatilities on Vipshop Holdings and WISH Old 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 WISH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and WISH Old.
Diversification Opportunities for Vipshop Holdings and WISH Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vipshop and WISH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and WISH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISH Old 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 WISH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISH Old has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and WISH Old go up and down completely randomly.
Pair Corralation between Vipshop Holdings and WISH Old
If you would invest 1,244 in Vipshop Holdings Limited on August 31, 2024 and sell it today you would earn a total of 113.00 from holding Vipshop Holdings Limited or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Vipshop Holdings Limited vs. WISH Old
Performance |
| Timeline |
| Vipshop Holdings |
| WISH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vipshop Holdings and WISH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vipshop Holdings and WISH Old
The main advantage of trading using opposite Vipshop Holdings and WISH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, WISH Old 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 WISH Old will offset losses from the drop in WISH Old's long position.| Vipshop Holdings vs. JD Inc Adr | Vipshop Holdings vs. Alibaba Group Holding | Vipshop Holdings vs. Sea | Vipshop Holdings vs. Jumia Technologies AG |
| WISH Old vs. Global E Online | WISH Old vs. PDD Holdings | WISH Old vs. Sea | WISH Old 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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