Correlation Between Global E and Vipshop Holdings
Can any of the company-specific risk be diversified away by investing in both Global E 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 Global E and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Vipshop Holdings Limited, you can compare the effects of market volatilities on Global E 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 Global E with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Vipshop Holdings.
Diversification Opportunities for Global E and Vipshop Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Vipshop is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Global E 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 Global E Online 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 Global E i.e., Global E and Vipshop Holdings go up and down completely randomly.
Pair Corralation between Global E and Vipshop Holdings
Given the investment horizon of 90 days Global E is expected to generate 1.14 times less return on investment than Vipshop Holdings. In addition to that, Global E is 1.24 times more volatile than Vipshop Holdings Limited. It trades about 0.01 of its total potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.01 per unit of volatility. If you would invest 1,668 in Vipshop Holdings Limited on April 24, 2025 and sell it today you would lose (91.00) from holding Vipshop Holdings Limited or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. Vipshop Holdings Limited
Performance |
| Timeline |
| Global E Online |
| Vipshop Holdings |
Global E and Vipshop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Vipshop Holdings
The main advantage of trading using opposite Global E and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. Sea | Global E vs. MercadoLibre | Global E vs. Jumia Technologies AG | Global E vs. PDD Holdings |
| Vipshop Holdings vs. PDD Holdings | Vipshop Holdings vs. JD Inc Adr | Vipshop Holdings vs. Baozun Inc | Vipshop Holdings vs. Global E Online |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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