Correlation Between CKH Food and Ajusteel
Can any of the company-specific risk be diversified away by investing in both CKH Food and Ajusteel 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 Ajusteel 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 Ajusteel Co, you can compare the effects of market volatilities on CKH Food and Ajusteel 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 Ajusteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKH Food and Ajusteel.
Diversification Opportunities for CKH Food and Ajusteel
Poor diversification
The 3 months correlation between CKH and Ajusteel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CKH Food Health and Ajusteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajusteel 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 Ajusteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajusteel has no effect on the direction of CKH Food i.e., CKH Food and Ajusteel go up and down completely randomly.
Pair Corralation between CKH Food and Ajusteel
Assuming the 90 days trading horizon CKH Food Health is expected to under-perform the Ajusteel. In addition to that, CKH Food is 1.18 times more volatile than Ajusteel Co. It trades about -0.12 of its total potential returns per unit of risk. Ajusteel Co is currently generating about -0.09 per unit of volatility. If you would invest 605,000 in Ajusteel Co on August 28, 2024 and sell it today you would lose (160,500) from holding Ajusteel Co or give up 26.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CKH Food Health vs. Ajusteel Co
Performance |
| Timeline |
| CKH Food Health |
| Ajusteel |
CKH Food and Ajusteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKH Food and Ajusteel
The main advantage of trading using opposite CKH Food and Ajusteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKH Food position performs unexpectedly, Ajusteel 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 Ajusteel will offset losses from the drop in Ajusteel's long position.| CKH Food vs. AptaBio Therapeutics | CKH Food vs. Daewoo SBI SPAC | CKH Food vs. Dream Security co | CKH Food vs. Microfriend |
| Ajusteel vs. Samyung Trading Co | Ajusteel vs. Formetal Co | Ajusteel vs. Daejung Chemicals Metals | Ajusteel vs. Seoyon Topmetal 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |