Correlation Analysis Between Target and Vipshop Holdings

Analyzing 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.
Horizon     30 Days    Login   to change
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Comparative Performance

Target  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Target Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, Target is not utilizing all of its potentials. The prevalent stock price uproar, may contribute to short horizon losses for the leadership.
Vipshop Holdings  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Vipshop Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Target and Vipshop Holdings Volatility Contrast

 Predicted Return Density 
    
  Returns 

Target Corp.  vs.  Vipshop Holdings Limited

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Target is expected to generate 9.83 times less return on investment than Vipshop Holdings. But when comparing it to its historical volatility, Target Corporation is 1.24 times less risky than Vipshop Holdings. It trades about 0.03 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  976.00  in Vipshop Holdings Limited on December 19, 2019 and sell it today you would earn a total of  465.00  from holding Vipshop Holdings Limited or generate 47.64% return on investment over 30 days.

Pair Corralation between Target and Vipshop Holdings

0.71
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Target and Vipshop Holdings

Target Corp. diversification synergy

Poor diversification

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 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 has no effect on the direction of Target i.e. Target and Vipshop Holdings go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.