Correlation Between SV Investment and CKH Food
Can any of the company-specific risk be diversified away by investing in both SV Investment 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 SV Investment and CKH Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SV Investment and CKH Food Health, you can compare the effects of market volatilities on SV Investment 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 SV Investment with a short position of CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of SV Investment and CKH Food.
Diversification Opportunities for SV Investment and CKH Food
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 289080 and CKH is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SV Investment 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 SV Investment 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 SV Investment 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 SV Investment i.e., SV Investment and CKH Food go up and down completely randomly.
Pair Corralation between SV Investment and CKH Food
Assuming the 90 days trading horizon SV Investment is expected to generate 0.84 times more return on investment than CKH Food. However, SV Investment is 1.19 times less risky than CKH Food. It trades about -0.03 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.06 per unit of risk. If you would invest 224,894 in SV Investment on October 25, 2024 and sell it today you would lose (93,794) from holding SV Investment or give up 41.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SV Investment vs. CKH Food Health
Performance |
| Timeline |
| SV Investment |
| CKH Food Health |
SV Investment and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SV Investment and CKH Food
The main advantage of trading using opposite SV Investment and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SV Investment 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.| SV Investment vs. Atinum Investment Co | SV Investment vs. SBI Investment KOREA | SV Investment vs. Busan Industrial Co | SV Investment vs. Busan Ind |
| CKH Food vs. Busan Industrial Co | CKH Food vs. Busan Ind | CKH Food vs. RPBio Inc | CKH Food vs. Finebesteel |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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