Correlation Between Vipshop Holdings and Intel
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and Intel 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 Vipshop Holdings and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vipshop Holdings Limited and Intel, you can compare the effects of market volatilities on Vipshop Holdings and Intel 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 Vipshop Holdings with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and Intel.
Diversification Opportunities for Vipshop Holdings and Intel
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vipshop and Intel is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Vipshop Holdings 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 Vipshop Holdings Limited are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and Intel go up and down completely randomly.
Pair Corralation between Vipshop Holdings and Intel
Given the investment horizon of 90 days Vipshop Holdings is expected to generate 1.44 times less return on investment than Intel. In addition to that, Vipshop Holdings is 1.12 times more volatile than Intel. It trades about 0.03 of its total potential returns per unit of risk. Intel is currently generating about 0.05 per unit of volatility. If you would invest 2,848 in Intel on January 20, 2024 and sell it today you would earn a total of 656.00 from holding Intel or generate 23.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Vipshop Holdings Limited vs. Intel
Performance |
Timeline |
Vipshop Holdings |
Intel |
Vipshop Holdings and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vipshop Holdings and Intel
The main advantage of trading using opposite Vipshop Holdings and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.Vipshop Holdings vs. Shoe Carnival | Vipshop Holdings vs. Hibbett Sports | Vipshop Holdings vs. Citi Trends | Vipshop Holdings vs. Zumiez Inc |
Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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