Correlation Between Tupperware Brands and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Tupperware Brands and Vipshop Holdings 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 Tupperware Brands and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tupperware Brands and Vipshop Holdings Limited, you can compare the effects of market volatilities on Tupperware Brands 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 Tupperware Brands with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tupperware Brands and Vipshop Holdings.
Diversification Opportunities for Tupperware Brands and Vipshop Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tupperware and Vipshop is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tupperware Brands and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Tupperware Brands 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 Tupperware Brands 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 has no effect on the direction of Tupperware Brands i.e., Tupperware Brands and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Tupperware Brands and Vipshop Holdings
Considering the 90-day investment horizon Tupperware Brands is expected to under-perform the Vipshop Holdings. In addition to that, Tupperware Brands is 1.36 times more volatile than Vipshop Holdings Limited. It trades about -0.2 of its total potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.03 per unit of volatility. If you would invest 1,458 in Vipshop Holdings Limited on January 20, 2024 and sell it today you would earn a total of 57.00 from holding Vipshop Holdings Limited or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tupperware Brands vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Tupperware Brands |
| Vipshop Holdings |
Tupperware Brands and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tupperware Brands and Vipshop Holdings
The main advantage of trading using opposite Tupperware Brands and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tupperware Brands position performs unexpectedly, Vipshop Holdings 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 Vipshop Holdings will offset losses from the drop in Vipshop Holdings' long position.| Tupperware Brands vs. Brunswick | Tupperware Brands vs. Ralph Lauren Corp | Tupperware Brands vs. Under Armour C | Tupperware Brands vs. Dogness International Corp |
| Vipshop Holdings vs. Shoe Carnival | Vipshop Holdings vs. Hibbett Sports | Vipshop Holdings vs. Citi Trends | Vipshop Holdings vs. Zumiez Inc |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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