Correlation Between INNOX Advanced and CKH Food
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced and CKH Food 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 INNOX Advanced and CKH Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and CKH Food Health, you can compare the effects of market volatilities on INNOX Advanced and CKH Food 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 INNOX Advanced with a short position of CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and CKH Food.
Diversification Opportunities for INNOX Advanced and CKH Food
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INNOX and CKH is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health and INNOX Advanced 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 INNOX Advanced Materials are associated (or correlated) with CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of INNOX Advanced i.e., INNOX Advanced and CKH Food go up and down completely randomly.
Pair Corralation between INNOX Advanced and CKH Food
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to generate 1.93 times more return on investment than CKH Food. However, INNOX Advanced is 1.93 times more volatile than CKH Food Health. It trades about 0.61 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.04 per unit of risk. If you would invest 1,959,000 in INNOX Advanced Materials on November 1, 2024 and sell it today you would earn a total of 816,000 from holding INNOX Advanced Materials or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. CKH Food Health
Performance |
| Timeline |
| INNOX Advanced Materials |
| CKH Food Health |
INNOX Advanced and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and CKH Food
The main advantage of trading using opposite INNOX Advanced and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| INNOX Advanced vs. DB Financial Investment | INNOX Advanced vs. Dgb Financial | INNOX Advanced vs. Ilji Technology Co | INNOX Advanced vs. Vina Technology Co |
| CKH Food vs. Nh Investment And | CKH Food vs. E Investment Development | CKH Food vs. Chorokbaem Healthcare Co | CKH Food vs. Cube Entertainment |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |