Correlation Between Chlitina Holding and Grape King
Can any of the company-specific risk be diversified away by investing in both Chlitina Holding and Grape King 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 Chlitina Holding and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chlitina Holding and Grape King Bio, you can compare the effects of market volatilities on Chlitina Holding and Grape King 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 Chlitina Holding with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chlitina Holding and Grape King.
Diversification Opportunities for Chlitina Holding and Grape King
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chlitina and Grape is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chlitina Holding and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Chlitina Holding 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 Chlitina Holding are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Chlitina Holding i.e., Chlitina Holding and Grape King go up and down completely randomly.
Pair Corralation between Chlitina Holding and Grape King
Assuming the 90 days trading horizon Chlitina Holding is expected to under-perform the Grape King. In addition to that, Chlitina Holding is 2.72 times more volatile than Grape King Bio. It trades about -0.19 of its total potential returns per unit of risk. Grape King Bio is currently generating about 0.14 per unit of volatility. If you would invest 15,300 in Grape King Bio on September 12, 2024 and sell it today you would earn a total of 350.00 from holding Grape King Bio or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chlitina Holding vs. Grape King Bio
Performance |
| Timeline |
| Chlitina Holding |
| Grape King Bio |
Chlitina Holding and Grape King Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chlitina Holding and Grape King
The main advantage of trading using opposite Chlitina Holding and Grape King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chlitina Holding position performs unexpectedly, Grape King 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 Grape King will offset losses from the drop in Grape King's long position.| Chlitina Holding vs. Standard Foods Corp | Chlitina Holding vs. Uni President Enterprises Corp | Chlitina Holding vs. Great Wall Enterprise | Chlitina Holding vs. Ruentex Development Co |
| Grape King vs. Standard Foods Corp | Grape King vs. Eclat Textile Co | Grape King vs. Feng Tay Enterprises | Grape King vs. China Steel Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |