Correlation Between Whole Foods and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Whole Foods 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 Whole Foods and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whole Foods Market and Vipshop Holdings Limited, you can compare the effects of market volatilities on Whole Foods 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 Whole Foods with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whole Foods and Vipshop Holdings.
Diversification Opportunities for Whole Foods and Vipshop Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whole and Vipshop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whole Foods Market and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Whole Foods 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 Whole Foods Market 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 Whole Foods i.e., Whole Foods and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Whole Foods and Vipshop Holdings
If you would invest 790.00 in Vipshop Holdings Limited on December 30, 2023 and sell it today you would earn a total of 865.00 from holding Vipshop Holdings Limited or generate 109.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Whole Foods Market vs. Vipshop Holdings Limited
Performance |
Timeline |
Whole Foods Market |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Vipshop Holdings |
Whole Foods and Vipshop Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Whole Foods and Vipshop Holdings
The main advantage of trading using opposite Whole Foods and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whole Foods 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.Whole Foods vs. Seadrill Limited | Whole Foods vs. Nabors Industries | Whole Foods vs. NRG Energy | Whole Foods vs. National Rural Utilities |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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