Correlation Between Bellring Brands and China Shenhua
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By analyzing existing cross correlation between Bellring Brands LLC and China Shenhua Energy, you can compare the effects of market volatilities on Bellring Brands and China Shenhua 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 Bellring Brands with a short position of China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellring Brands and China Shenhua.
Diversification Opportunities for Bellring Brands and China Shenhua
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bellring and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bellring Brands LLC and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy and Bellring Brands 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 Bellring Brands LLC are associated (or correlated) with China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Bellring Brands i.e., Bellring Brands and China Shenhua go up and down completely randomly.
Pair Corralation between Bellring Brands and China Shenhua
Given the investment horizon of 90 days Bellring Brands LLC is expected to generate 1.05 times more return on investment than China Shenhua. However, Bellring Brands is 1.05 times more volatile than China Shenhua Energy. It trades about 0.13 of its potential returns per unit of risk. China Shenhua Energy is currently generating about 0.08 per unit of risk. If you would invest 4,498 in Bellring Brands LLC on September 1, 2024 and sell it today you would earn a total of 3,348 from holding Bellring Brands LLC or generate 74.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.65% |
| Values | Daily Returns |
Bellring Brands LLC vs. China Shenhua Energy
Performance |
| Timeline |
| Bellring Brands LLC |
| China Shenhua Energy |
Bellring Brands and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellring Brands and China Shenhua
The main advantage of trading using opposite Bellring Brands and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellring Brands position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.| Bellring Brands vs. Treehouse Foods | Bellring Brands vs. Pilgrims Pride Corp | Bellring Brands vs. Ingredion Incorporated | Bellring Brands vs. JM Smucker |
| China Shenhua vs. Zhejiang Kingland Pipeline | China Shenhua vs. Zhejiang Dahua Technology | China Shenhua vs. Changchun Faway Automobile | China Shenhua vs. Shanghai Lingyun Industries |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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