Correlation Between CKH Food and DataSolution
Can any of the company-specific risk be diversified away by investing in both CKH Food and DataSolution 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 DataSolution 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 DataSolution, you can compare the effects of market volatilities on CKH Food and DataSolution 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 DataSolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKH Food and DataSolution.
Diversification Opportunities for CKH Food and DataSolution
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CKH and DataSolution is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CKH Food Health and DataSolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DataSolution 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 DataSolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DataSolution has no effect on the direction of CKH Food i.e., CKH Food and DataSolution go up and down completely randomly.
Pair Corralation between CKH Food and DataSolution
Assuming the 90 days trading horizon CKH Food Health is expected to under-perform the DataSolution. But the stock apears to be less risky and, when comparing its historical volatility, CKH Food Health is 1.9 times less risky than DataSolution. The stock trades about -0.19 of its potential returns per unit of risk. The DataSolution is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 433,500 in DataSolution on August 29, 2024 and sell it today you would earn a total of 60,500 from holding DataSolution or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CKH Food Health vs. DataSolution
Performance |
| Timeline |
| CKH Food Health |
| DataSolution |
CKH Food and DataSolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKH Food and DataSolution
The main advantage of trading using opposite CKH Food and DataSolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKH Food position performs unexpectedly, DataSolution 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 DataSolution will offset losses from the drop in DataSolution's long position.| CKH Food vs. AptaBio Therapeutics | CKH Food vs. Daewoo SBI SPAC | CKH Food vs. Dream Security co | CKH Food vs. Microfriend |
| DataSolution vs. Samsung Electronics Co | DataSolution vs. Samsung Electronics Co | DataSolution vs. LG Energy Solution | DataSolution vs. SK Hynix |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |