Correlation Between Coupang LLC and LianDi Clean

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

By analyzing existing cross correlation between Coupang LLC and LianDi Clean Technology, you can compare the effects of market volatilities on Coupang LLC and LianDi Clean 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 LianDi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and LianDi Clean.

Diversification Opportunities for Coupang LLC and LianDi Clean

0.0

Correlation Coefficient

Coupang LLC  LianDi Clean

Pay attention - limited upside

The 3 months correlation between Coupang and LianDi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and LianDi Clean Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianDi Clean Technology 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 LianDi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianDi Clean Technology has no effect on the direction of Coupang LLC i.e., Coupang LLC and LianDi Clean go up and down completely randomly.

Pair Corralation between Coupang LLC and LianDi Clean

If you would invest  1,384  in Coupang LLC on February 5, 2024 and sell it today you would earn a total of  916.00  from holding Coupang LLC or generate 66.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Coupang LLC  vs.  LianDi Clean Technology

Coupang LLC

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Coupang LLC are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Coupang LLC reported solid returns over the last few months and may actually be approaching a breakup point.

LianDi Clean Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LianDi Clean Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, LianDi Clean is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Coupang LLC and LianDi Clean

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

The idea behind Coupang LLC and LianDi Clean Technology 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.