Correlation Between Bukit Jalil and Coupang LLC

Can any of the company-specific risk be diversified away by investing in both Bukit Jalil and Coupang LLC 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 Bukit Jalil and Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bukit Jalil Global and Coupang LLC, you can compare the effects of market volatilities on Bukit Jalil and Coupang LLC 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 Bukit Jalil with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Jalil and Coupang LLC.

Diversification Opportunities for Bukit Jalil and Coupang LLC

0.58

Correlation Coefficient

Bukit Jalil  Coupang LLC

Very weak diversification

The 3 months correlation between Bukit and Coupang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Jalil Global and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and Bukit Jalil 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 Bukit Jalil Global are associated (or correlated) with Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Bukit Jalil i.e., Bukit Jalil and Coupang LLC go up and down completely randomly.

Pair Corralation between Bukit Jalil and Coupang LLC

Assuming the 90 days horizon Bukit Jalil Global is expected to generate 6.83 times more return on investment than Coupang LLC. However, Bukit Jalil is 6.83 times more volatile than Coupang LLC. It trades about 0.04 of its potential returns per unit of risk. Coupang LLC is currently generating about 0.06 per unit of risk. If you would invest  17.00  in Bukit Jalil Global on October 5, 2024 and sell it today you would lose (7.00) from holding Bukit Jalil Global or give up 41.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	26.59%
Values	Daily Returns

Bukit Jalil Global  vs.  Coupang LLC

Bukit Jalil Global

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Bukit Jalil Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Bukit Jalil reported solid returns over the last few months and may actually be approaching a breakup point.

Coupang LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coupang LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Bukit Jalil and Coupang LLC

The main advantage of trading using opposite Bukit Jalil and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Jalil position performs unexpectedly, Coupang LLC 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 LLC will offset losses from the drop in Coupang LLC's long position.

The idea behind Bukit Jalil Global and Coupang LLC 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.