Correlation Between Cal Maine and Shineco
Can any of the company-specific risk be diversified away by investing in both Cal Maine and Shineco 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 Cal Maine and Shineco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Maine Foods and Shineco, you can compare the effects of market volatilities on Cal Maine and Shineco 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 Cal Maine with a short position of Shineco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Maine and Shineco.
Diversification Opportunities for Cal Maine and Shineco
Pay attention - limited upside
The 3 months correlation between Cal and Shineco is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and Shineco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shineco and Cal Maine 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 Cal Maine Foods are associated (or correlated) with Shineco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shineco has no effect on the direction of Cal Maine i.e., Cal Maine and Shineco go up and down completely randomly.
Pair Corralation between Cal Maine and Shineco
Given the investment horizon of 90 days Cal Maine is expected to generate 12.19 times less return on investment than Shineco. But when comparing it to its historical volatility, Cal Maine Foods is 38.22 times less risky than Shineco. It trades about 0.18 of its potential returns per unit of risk. Shineco is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Shineco on August 31, 2024 and sell it today you would lose (20.00) from holding Shineco or give up 7.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Maine Foods vs. Shineco
Performance |
| Timeline |
| Cal Maine Foods |
| Shineco |
Cal Maine and Shineco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Maine and Shineco
The main advantage of trading using opposite Cal Maine and Shineco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine position performs unexpectedly, Shineco 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 Shineco will offset losses from the drop in Shineco's long position.| Cal Maine vs. Bunge Limited | Cal Maine vs. Tyson Foods | Cal Maine vs. Dole PLC | Cal Maine vs. Adecoagro SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |