Correlation Between MEITUAN UNSPADR2B and Coupang
Can any of the company-specific risk be diversified away by investing in both MEITUAN UNSPADR2B and Coupang 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 MEITUAN UNSPADR2B and Coupang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEITUAN UNSPADR2B and Coupang, you can compare the effects of market volatilities on MEITUAN UNSPADR2B and Coupang 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 MEITUAN UNSPADR2B with a short position of Coupang. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITUAN UNSPADR2B and Coupang.
Diversification Opportunities for MEITUAN UNSPADR2B and Coupang
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MEITUAN and Coupang is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MEITUAN UNSPADR2B and Coupang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang and MEITUAN UNSPADR2B 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 MEITUAN UNSPADR2B are associated (or correlated) with Coupang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang has no effect on the direction of MEITUAN UNSPADR2B i.e., MEITUAN UNSPADR2B and Coupang go up and down completely randomly.
Pair Corralation between MEITUAN UNSPADR2B and Coupang
Assuming the 90 days trading horizon MEITUAN UNSPADR2B is expected to generate 2.54 times more return on investment than Coupang. However, MEITUAN UNSPADR2B is 2.54 times more volatile than Coupang. It trades about 0.05 of its potential returns per unit of risk. Coupang is currently generating about 0.0 per unit of risk. If you would invest 3,540 in MEITUAN UNSPADR2B on September 26, 2024 and sell it today you would earn a total of 260.00 from holding MEITUAN UNSPADR2B or generate 7.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MEITUAN UNSPADR2B vs. Coupang
Performance |
Timeline |
MEITUAN UNSPADR2B |
Coupang |
MEITUAN UNSPADR2B and Coupang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEITUAN UNSPADR2B and Coupang
The main advantage of trading using opposite MEITUAN UNSPADR2B and Coupang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITUAN UNSPADR2B position performs unexpectedly, Coupang 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 Coupang will offset losses from the drop in Coupang's long position.MEITUAN UNSPADR2B vs. Amazon Inc | MEITUAN UNSPADR2B vs. Amazon Inc | MEITUAN UNSPADR2B vs. Pinduoduo | MEITUAN UNSPADR2B vs. Meituan |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |