Correlation Between Gourmet Master and An Shin
Can any of the company-specific risk be diversified away by investing in both Gourmet Master and An Shin 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 Gourmet Master and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gourmet Master Co and An Shin Food Services, you can compare the effects of market volatilities on Gourmet Master and An Shin 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 Gourmet Master with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gourmet Master and An Shin.
Diversification Opportunities for Gourmet Master and An Shin
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gourmet and 1259 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gourmet Master Co and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and Gourmet Master 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 Gourmet Master Co are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of Gourmet Master i.e., Gourmet Master and An Shin go up and down completely randomly.
Pair Corralation between Gourmet Master and An Shin
Assuming the 90 days trading horizon Gourmet Master Co is expected to under-perform the An Shin. In addition to that, Gourmet Master is 2.76 times more volatile than An Shin Food Services. It trades about -0.03 of its total potential returns per unit of risk. An Shin Food Services is currently generating about -0.03 per unit of volatility. If you would invest 7,025 in An Shin Food Services on November 1, 2024 and sell it today you would lose (725.00) from holding An Shin Food Services or give up 10.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gourmet Master Co vs. An Shin Food Services
Performance |
| Timeline |
| Gourmet Master |
| An Shin Food |
Gourmet Master and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gourmet Master and An Shin
The main advantage of trading using opposite Gourmet Master and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gourmet Master position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.| Gourmet Master vs. Wowprime Corp | Gourmet Master vs. President Chain Store | Gourmet Master vs. Eclat Textile Co | Gourmet Master vs. Giant Manufacturing Co |
| An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. TTFB 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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