Correlation Between CKH Food and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both CKH Food and Haitai Confectionery 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 CKH Food and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKH Food Health and Haitai Confectionery Foods, you can compare the effects of market volatilities on CKH Food and Haitai Confectionery 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 CKH Food with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKH Food and Haitai Confectionery.
Diversification Opportunities for CKH Food and Haitai Confectionery
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CKH and Haitai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CKH Food Health and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and CKH Food 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 CKH Food Health are associated (or correlated) with Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of CKH Food i.e., CKH Food and Haitai Confectionery go up and down completely randomly.
Pair Corralation between CKH Food and Haitai Confectionery
Assuming the 90 days trading horizon CKH Food Health is expected to under-perform the Haitai Confectionery. In addition to that, CKH Food is 1.35 times more volatile than Haitai Confectionery Foods. It trades about -0.06 of its total potential returns per unit of risk. Haitai Confectionery Foods is currently generating about 0.01 per unit of volatility. If you would invest 603,143 in Haitai Confectionery Foods on August 25, 2024 and sell it today you would lose (21,143) from holding Haitai Confectionery Foods or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CKH Food Health vs. Haitai Confectionery Foods
Performance |
| Timeline |
| CKH Food Health |
| Haitai Confectionery |
CKH Food and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKH Food and Haitai Confectionery
The main advantage of trading using opposite CKH Food and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKH Food position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| CKH Food vs. AptaBio Therapeutics | CKH Food vs. Daewoo SBI SPAC | CKH Food vs. Dream Security co | CKH Food vs. Microfriend |
| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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