Correlation Between Vipshop Holdings and Sysco
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and Sysco 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 Sysco 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 Sysco, you can compare the effects of market volatilities on Vipshop Holdings and Sysco 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 Sysco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and Sysco.
Diversification Opportunities for Vipshop Holdings and Sysco
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vipshop and Sysco is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and Sysco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysco 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 Sysco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysco has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and Sysco go up and down completely randomly.
Pair Corralation between Vipshop Holdings and Sysco
Given the investment horizon of 90 days Vipshop Holdings Limited is expected to generate 3.47 times more return on investment than Sysco. However, Vipshop Holdings is 3.47 times more volatile than Sysco. It trades about -0.03 of its potential returns per unit of risk. Sysco is currently generating about -0.11 per unit of risk. If you would invest 1,657 in Vipshop Holdings Limited on January 24, 2024 and sell it today you would lose (97.00) from holding Vipshop Holdings Limited or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vipshop Holdings Limited vs. Sysco
Performance |
| Timeline |
| Vipshop Holdings |
| Sysco |
Vipshop Holdings and Sysco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vipshop Holdings and Sysco
The main advantage of trading using opposite Vipshop Holdings and Sysco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, Sysco 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 Sysco will offset losses from the drop in Sysco's long position.| Vipshop Holdings vs. Appian Corp | Vipshop Holdings vs. Okta Inc | Vipshop Holdings vs. MongoDB | Vipshop Holdings vs. Twilio Inc |
| Sysco vs. Big Lots | Sysco vs. Aquagold International | Sysco vs. Thrivent High Yield | Sysco vs. Morningstar Unconstrained Allocation |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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