Correlation Between Continental Beverage and Huaizhong Health
Can any of the company-specific risk be diversified away by investing in both Continental Beverage and Huaizhong Health 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 Continental Beverage and Huaizhong Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Continental Beverage Brands and Huaizhong Health Group, you can compare the effects of market volatilities on Continental Beverage and Huaizhong Health 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 Continental Beverage with a short position of Huaizhong Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Beverage and Huaizhong Health.
Diversification Opportunities for Continental Beverage and Huaizhong Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Continental and Huaizhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Continental Beverage Brands and Huaizhong Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaizhong Health and Continental Beverage 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 Continental Beverage Brands are associated (or correlated) with Huaizhong Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaizhong Health has no effect on the direction of Continental Beverage i.e., Continental Beverage and Huaizhong Health go up and down completely randomly.
Pair Corralation between Continental Beverage and Huaizhong Health
If you would invest 20.00 in Continental Beverage Brands on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Continental Beverage Brands or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Continental Beverage Brands vs. Huaizhong Health Group
Performance |
| Timeline |
| Continental Beverage |
| Huaizhong Health |
Continental Beverage and Huaizhong Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Continental Beverage and Huaizhong Health
The main advantage of trading using opposite Continental Beverage and Huaizhong Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental Beverage position performs unexpectedly, Huaizhong Health 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 Huaizhong Health will offset losses from the drop in Huaizhong Health's long position.| Continental Beverage vs. Green Planet Bio | Continental Beverage vs. Azure Holding Group | Continental Beverage vs. Four Leaf Acquisition | Continental Beverage vs. Opus Magnum Ameris |
| Huaizhong Health vs. Fomento Economico Mexicano | Huaizhong Health vs. SkyWest | Huaizhong Health vs. Keurig Dr Pepper | Huaizhong Health vs. Sun Country Airlines |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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