Correlation Between KVH Industries and Coupang LLC

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

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

Diversification Opportunities for KVH Industries and Coupang LLC

0.66

Correlation Coefficient

KVH Industries  Coupang LLC

Poor diversification

The 3 months correlation between KVH and Coupang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and Coupang LLC go up and down completely randomly.

Pair Corralation between KVH Industries and Coupang LLC

Given the investment horizon of 90 days KVH Industries is expected to generate 1.7 times less return on investment than Coupang LLC. In addition to that, KVH Industries is 1.1 times more volatile than Coupang LLC. It trades about 0.07 of its total potential returns per unit of risk. Coupang LLC is currently generating about 0.14 per unit of volatility. If you would invest  2,660  in Coupang LLC on May 7, 2025 and sell it today you would earn a total of  303.00  from holding Coupang LLC or generate 11.39% return on investment over 90 days.

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

KVH Industries  vs.  Coupang LLC

KVH Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KVH Industries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical indicators, KVH Industries may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Coupang LLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coupang LLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Coupang LLC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with KVH Industries and Coupang LLC

The main advantage of trading using opposite KVH Industries and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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 KVH Industries 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 Global Correlations module to find global opportunities by holding instruments from different markets.