Pair Correlation Between Target and Vipshop Holdings

This module allows you to analyze existing cross correlation between Target Corporation and Vipshop Holdings Limited. You can compare the effects of market volatilities on Target 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 Target with a short position of Vipshop Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of Target and Vipshop Holdings.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Target Corp.  vs   Vipshop Holdings Limited
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Target Corporation is expected to generate 0.85 times more return on investment than Vipshop Holdings. However, Target Corporation is 1.17 times less risky than Vipshop Holdings. It trades about 0.04 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.03 per unit of risk. If you would invest  6,040  in Target Corporation on November 12, 2017 and sell it today you would earn a total of  107  from holding Target Corporation or generate 1.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Target and Vipshop Holdings
-0.17

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Target Corp. and Vipshop Holdings Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings Limited and Target 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 Target Corporation 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 Limited has no effect on the direction of Target i.e. Target and Vipshop Holdings go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Target

  
2 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

Vipshop Holdings Limited

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.