Correlation Between Coupang LLC and INTNED

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

By analyzing existing cross correlation between Coupang LLC and INTNED 3869 28 MAR 26, you can compare the effects of market volatilities on Coupang LLC and INTNED 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 Coupang LLC with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and INTNED.

Diversification Opportunities for Coupang LLC and INTNED

0.5

Correlation Coefficient

Coupang LLC  INTNED

Very weak diversification

The 3 months correlation between Coupang and INTNED is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and INTNED 3869 28 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 3869 28 and Coupang LLC 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 Coupang LLC are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 3869 28 has no effect on the direction of Coupang LLC i.e., Coupang LLC and INTNED go up and down completely randomly.

Pair Corralation between Coupang LLC and INTNED

Given the investment horizon of 90 days Coupang LLC is expected to generate 1.44 times more return on investment than INTNED. However, Coupang LLC is 1.44 times more volatile than INTNED 3869 28 MAR 26. It trades about -0.11 of its potential returns per unit of risk. INTNED 3869 28 MAR 26 is currently generating about -0.3 per unit of risk. If you would invest  2,400  in Coupang LLC on September 22, 2024 and sell it today you would lose (106.00) from holding Coupang LLC or give up 4.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	52.38%
Values	Daily Returns

Coupang LLC  vs.  INTNED 3869 28 MAR 26

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 nearly stable basic indicators, Coupang LLC is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

INTNED 3869 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 3869 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Coupang LLC and INTNED

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

The idea behind Coupang LLC and INTNED 3869 28 MAR 26 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.