Correlation Between Coupang LLC and Miniso Group
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Miniso Group 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 Coupang LLC and Miniso Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Miniso Group HoldingLtd, you can compare the effects of market volatilities on Coupang LLC and Miniso Group 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 Coupang LLC with a short position of Miniso Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Miniso Group.
Diversification Opportunities for Coupang LLC and Miniso Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coupang and Miniso is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Miniso Group HoldingLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group HoldingLtd and Coupang LLC 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 Coupang LLC are associated (or correlated) with Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group HoldingLtd has no effect on the direction of Coupang LLC i.e., Coupang LLC and Miniso Group go up and down completely randomly.
Pair Corralation between Coupang LLC and Miniso Group
If you would invest 2,258 in Miniso Group HoldingLtd on February 24, 2024 and sell it today you would lose (23.00) from holding Miniso Group HoldingLtd or give up 1.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Coupang LLC vs. Miniso Group HoldingLtd
Performance |
Timeline |
Coupang LLC |
Miniso Group HoldingLtd |
Coupang LLC and Miniso Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coupang LLC and Miniso Group
The main advantage of trading using opposite Coupang LLC and Miniso Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Miniso Group 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 Miniso Group will offset losses from the drop in Miniso Group's long position.Coupang LLC vs. Pinduoduo | Coupang LLC vs. Sea | Coupang LLC vs. MercadoLibre | Coupang LLC vs. Alibaba Group Holding |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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