Correlation Between Chia Her and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Chia Her and Hunya Foods 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 Chia Her and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia Her Industrial and Hunya Foods Co, you can compare the effects of market volatilities on Chia Her and Hunya Foods 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 Chia Her with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia Her and Hunya Foods.
Diversification Opportunities for Chia Her and Hunya Foods
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chia and Hunya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chia Her Industrial and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Chia Her 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 Chia Her Industrial are associated (or correlated) with Hunya Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunya Foods has no effect on the direction of Chia Her i.e., Chia Her and Hunya Foods go up and down completely randomly.
Pair Corralation between Chia Her and Hunya Foods
Assuming the 90 days trading horizon Chia Her Industrial is expected to generate 2.72 times more return on investment than Hunya Foods. However, Chia Her is 2.72 times more volatile than Hunya Foods Co. It trades about 0.03 of its potential returns per unit of risk. Hunya Foods Co is currently generating about 0.0 per unit of risk. If you would invest 1,550 in Chia Her Industrial on November 27, 2024 and sell it today you would earn a total of 380.00 from holding Chia Her Industrial or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia Her Industrial vs. Hunya Foods Co
Performance |
| Timeline |
| Chia Her Industrial |
| Hunya Foods |
Chia Her and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia Her and Hunya Foods
The main advantage of trading using opposite Chia Her and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia Her position performs unexpectedly, Hunya Foods 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 Hunya Foods will offset losses from the drop in Hunya Foods' long position.| Chia Her vs. Carnival Industrial Corp | Chia Her vs. I Hwa Industrial Co | Chia Her vs. Hung Chou Fiber | Chia Her vs. Tung Ho Textile |
| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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