Correlation Between Nomad Foods and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Nomad Foods and Chuangs China 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 Nomad Foods and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomad Foods and Chuangs China Investments, you can compare the effects of market volatilities on Nomad Foods and Chuangs China 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 Nomad Foods with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and Chuangs China.
Diversification Opportunities for Nomad Foods and Chuangs China
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nomad and Chuangs is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and Nomad Foods 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 Nomad Foods are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Nomad Foods i.e., Nomad Foods and Chuangs China go up and down completely randomly.
Pair Corralation between Nomad Foods and Chuangs China
If you would invest 1.00 in Chuangs China Investments on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomad Foods vs. Chuangs China Investments
Performance |
| Timeline |
| Nomad Foods |
| Chuangs China Investments |
Nomad Foods and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and Chuangs China
The main advantage of trading using opposite Nomad Foods and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| Nomad Foods vs. National Beverage Corp | Nomad Foods vs. Tencent Music Entertainment | Nomad Foods vs. SENECA FOODS A | Nomad Foods vs. MTY Food Group |
| Chuangs China vs. Performance Food Group | Chuangs China vs. UNITED UTILITIES GR | Chuangs China vs. Eidesvik Offshore ASA | Chuangs China vs. Nomad Foods |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |