Correlation Between Vipshop Holdings and Apple

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Vipshop Holdings and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and Apple.

Diversification Opportunities for Vipshop Holdings and Apple

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between Vipshop and Apple is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and Apple go up and down completely randomly.

Pair Corralation between Vipshop Holdings and Apple

Given the investment horizon of 90 days Vipshop Holdings Limited is expected to generate 2.57 times more return on investment than Apple. However, Vipshop Holdings is 2.57 times more volatile than Apple Inc. It trades about -0.01 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest  1,691  in Vipshop Holdings Limited on December 29, 2023 and sell it today you would lose (45.00) from holding Vipshop Holdings Limited or give up 2.66% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Vipshop Holdings Limited  vs.  Apple Inc

 Performance 
       Timeline  
Vipshop Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Vipshop Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vipshop Holdings is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Apple Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Vipshop Holdings and Apple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vipshop Holdings and Apple

The main advantage of trading using opposite Vipshop Holdings and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.
The idea behind Vipshop Holdings Limited and Apple Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Stocks Directory
Find actively traded stocks across global markets
Global Correlations
Find global opportunities by holding instruments from different markets
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges