Correlation Between SUPERVALU INC and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both SUPERVALU INC 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 SUPERVALU INC and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPERVALU INC and Vipshop Holdings Limited, you can compare the effects of market volatilities on SUPERVALU INC 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 SUPERVALU INC with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPERVALU INC and Vipshop Holdings.
Diversification Opportunities for SUPERVALU INC and Vipshop Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUPERVALU and Vipshop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUPERVALU INC and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and SUPERVALU INC 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 SUPERVALU INC 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 SUPERVALU INC i.e., SUPERVALU INC and Vipshop Holdings go up and down completely randomly.
Pair Corralation between SUPERVALU INC and Vipshop Holdings
If you would invest (100.00) in SUPERVALU INC on February 8, 2024 and sell it today you would earn a total of 100.00 from holding SUPERVALU INC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SUPERVALU INC vs. Vipshop Holdings Limited
Performance |
| Timeline |
| SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vipshop Holdings |
SUPERVALU INC and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPERVALU INC and Vipshop Holdings
The main advantage of trading using opposite SUPERVALU INC and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPERVALU INC 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.| SUPERVALU INC vs. Fair Isaac | SUPERVALU INC vs. Porvair plc | SUPERVALU INC vs. Mesa Air Group | SUPERVALU INC vs. Air Products and |
| Vipshop Holdings vs. Pinduoduo | Vipshop Holdings vs. Sea | Vipshop Holdings vs. MercadoLibre | Vipshop Holdings vs. Alibaba Group Holding |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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