Correlation Between Enjoei SA and Vipshop Holdings

Can any of the company-specific risk be diversified away by investing in both Enjoei SA 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 Enjoei SA and Vipshop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enjoei SA and Vipshop Holdings Limited, you can compare the effects of market volatilities on Enjoei SA 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 Enjoei SA with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enjoei SA and Vipshop Holdings.

Diversification Opportunities for Enjoei SA and Vipshop Holdings

-0.18

Correlation Coefficient

Enjoei SA  Vipshop Holdings

Good diversification

The 3 months correlation between Enjoei and Vipshop is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enjoei SA and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Enjoei SA 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 Enjoei SA 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 Enjoei SA i.e., Enjoei SA and Vipshop Holdings go up and down completely randomly.

Pair Corralation between Enjoei SA and Vipshop Holdings

Assuming the 90 days trading horizon Enjoei SA is expected to under-perform the Vipshop Holdings. In addition to that, Enjoei SA is 1.92 times more volatile than Vipshop Holdings Limited. It trades about -0.04 of its total potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.15 per unit of volatility. If you would invest  3,686  in Vipshop Holdings Limited on April 21, 2025 and sell it today you would earn a total of  697.00  from holding Vipshop Holdings Limited or generate 18.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Enjoei SA  vs.  Vipshop Holdings Limited

Enjoei SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enjoei SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Vipshop Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Vipshop Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enjoei SA and Vipshop Holdings

The main advantage of trading using opposite Enjoei SA and Vipshop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enjoei SA 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.

The idea behind Enjoei SA and Vipshop Holdings Limited 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.