Correlation Between Quantumscape Corp and Vipshop Holdings

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

By analyzing existing cross correlation between Quantumscape Corp and Vipshop Holdings Limited, you can compare the effects of market volatilities on Quantumscape Corp 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 Quantumscape Corp with a short position of Vipshop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantumscape Corp and Vipshop Holdings.

Diversification Opportunities for Quantumscape Corp and Vipshop Holdings

0.68

Correlation Coefficient

Quantumscape Corp  Vipshop Holdings

Poor diversification

The 3 months correlation between Quantumscape and Vipshop is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Quantumscape Corp and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Quantumscape Corp 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 Quantumscape Corp 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 Quantumscape Corp i.e., Quantumscape Corp and Vipshop Holdings go up and down completely randomly.

Pair Corralation between Quantumscape Corp and Vipshop Holdings

Allowing for the 90-day total investment horizon Quantumscape Corp is expected to generate 4.0 times more return on investment than Vipshop Holdings. However, Quantumscape Corp is 4.0 times more volatile than Vipshop Holdings Limited. It trades about 0.1 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about -0.19 per unit of risk. If you would invest  1,533  in Quantumscape Corp on August 8, 2025 and sell it today you would earn a total of  174.00  from holding Quantumscape Corp or generate 11.35% return on investment over 90 days.

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

Quantumscape Corp  vs.  Vipshop Holdings Limited

Quantumscape Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantumscape Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Quantumscape Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Vipshop Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vipshop Holdings Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vipshop Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quantumscape Corp and Vipshop Holdings

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

The idea behind Quantumscape Corp and Vipshop Holdings Limited 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.