Correlation Between CN MODERN and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both CN MODERN and SIEM OFFSHORE 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 CN MODERN and SIEM OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and SIEM OFFSHORE NEW, you can compare the effects of market volatilities on CN MODERN and SIEM OFFSHORE 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 CN MODERN with a short position of SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and SIEM OFFSHORE.
Diversification Opportunities for CN MODERN and SIEM OFFSHORE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 07M and SIEM is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of CN MODERN i.e., CN MODERN and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between CN MODERN and SIEM OFFSHORE
Assuming the 90 days trading horizon CN MODERN DAIRY is expected to generate 0.78 times more return on investment than SIEM OFFSHORE. However, CN MODERN DAIRY is 1.29 times less risky than SIEM OFFSHORE. It trades about 0.13 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about -0.08 per unit of risk. If you would invest 9.25 in CN MODERN DAIRY on October 30, 2024 and sell it today you would earn a total of 1.75 from holding CN MODERN DAIRY or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN MODERN DAIRY vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| CN MODERN DAIRY |
| SIEM OFFSHORE NEW |
CN MODERN and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and SIEM OFFSHORE
The main advantage of trading using opposite CN MODERN and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| CN MODERN vs. CHAMPION IRON | CN MODERN vs. Coffee Holding Co | CN MODERN vs. Micron Technology | CN MODERN vs. Check Point Software |
| SIEM OFFSHORE vs. PATTIES FOODS | SIEM OFFSHORE vs. TreeHouse Foods | SIEM OFFSHORE vs. GOODYEAR T RUBBER | SIEM OFFSHORE vs. Lery Seafood Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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