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Correlation Between Walmart and Vipshop Holdings

Analyzing existing cross correlation between Walmart and Vipshop Holdings Limited. You can compare the effects of market volatilities on Walmart 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 Walmart with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Vipshop Holdings.

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Diversification Opportunities for Walmart and Vipshop Holdings

Walmart Inc diversification synergy
-0.23
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<div class='circular--portrait-small' style='background:#2A0CD0;color: white;font-size:1.1em;padding-top: 12px;;'>VIP</div>

Very good diversification

The 3 months correlation between Walmart and Vipshop is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc and Vipshop Holdings Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Walmart 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 Walmart 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 Walmart i.e. Walmart and Vipshop Holdings go up and down completely randomly.

Pair Corralation between Walmart and Vipshop Holdings

Considering 30-days investment horizon, Walmart is expected to under-perform the Vipshop Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Walmart is 2.82 times less risky than Vipshop Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Vipshop Holdings Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,218  in Vipshop Holdings Limited on January 21, 2020 and sell it today you would earn a total of  149.00  from holding Vipshop Holdings Limited or generate 12.23% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Walmart Inc  vs.  Vipshop Holdings Limited

 Performance (%) 
    
  Timeline 
Walmart 
00

Risk-Adjusted Performance

Over the last 30 days Walmart has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unchanging essential indicators, Walmart is not utilizing all of its potentials. The latest stock price uproar, may contribute to short horizon losses for the leadership.
Vipshop Holdings 
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Vipshop Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Walmart and Vipshop Holdings Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.