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
Target Corp. vs Vipshop Holdings Limited
Considering 30-days investment horizon, Target Corporation is expected to under-perform the Vipshop Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Target Corporation is 1.97 times less risky than Vipshop Holdings. The stock trades about -0.18 of its potential returns per unit of risk. The Vipshop Holdings Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Vipshop Holdings Limited on January 22, 2018 and sell it today you would earn a total of 250.00 from holding Vipshop Holdings Limited or generate 15.63% return on investment over 30 days.
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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.
Over the last 30 days Target Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.