Correlation Between CNVISION MEDIA and US FOODS
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and US FOODS 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 CNVISION MEDIA and US FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and US FOODS HOLDING, you can compare the effects of market volatilities on CNVISION MEDIA and US FOODS 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 CNVISION MEDIA with a short position of US FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and US FOODS.
Diversification Opportunities for CNVISION MEDIA and US FOODS
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNVISION and UFH is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and US FOODS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US FOODS HOLDING and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with US FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US FOODS HOLDING has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and US FOODS go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and US FOODS
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 2.27 times less return on investment than US FOODS. In addition to that, CNVISION MEDIA is 1.97 times more volatile than US FOODS HOLDING. It trades about 0.04 of its total potential returns per unit of risk. US FOODS HOLDING is currently generating about 0.19 per unit of volatility. If you would invest 6,300 in US FOODS HOLDING on September 13, 2024 and sell it today you would earn a total of 400.00 from holding US FOODS HOLDING or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CNVISION MEDIA vs. US FOODS HOLDING
Performance |
| Timeline |
| CNVISION MEDIA |
| US FOODS HOLDING |
CNVISION MEDIA and US FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and US FOODS
The main advantage of trading using opposite CNVISION MEDIA and US FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, US FOODS 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 US FOODS will offset losses from the drop in US FOODS's long position.| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
| US FOODS vs. T MOBILE US | US FOODS vs. Gamma Communications plc | US FOODS vs. AOYAMA TRADING | US FOODS vs. Tower One Wireless |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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