Correlation Between Central Garden and China Mengniu
Can any of the company-specific risk be diversified away by investing in both Central Garden and China Mengniu 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 Central Garden and China Mengniu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Garden Pet and China Mengniu Dairy, you can compare the effects of market volatilities on Central Garden and China Mengniu 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 Central Garden with a short position of China Mengniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Garden and China Mengniu.
Diversification Opportunities for Central Garden and China Mengniu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Central and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Central Garden Pet and China Mengniu Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mengniu Dairy and Central Garden 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 Central Garden Pet are associated (or correlated) with China Mengniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mengniu Dairy has no effect on the direction of Central Garden i.e., Central Garden and China Mengniu go up and down completely randomly.
Pair Corralation between Central Garden and China Mengniu
If you would invest 148.00 in China Mengniu Dairy on October 21, 2024 and sell it today you would earn a total of 0.00 from holding China Mengniu Dairy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Central Garden Pet vs. China Mengniu Dairy
Performance |
| Timeline |
| Central Garden Pet |
| China Mengniu Dairy |
Central Garden and China Mengniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Garden and China Mengniu
The main advantage of trading using opposite Central Garden and China Mengniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Garden position performs unexpectedly, China Mengniu 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 Mengniu will offset losses from the drop in China Mengniu's long position.| Central Garden vs. Seneca Foods Corp | Central Garden vs. McCormick Company Incorporated | Central Garden vs. Natures Sunshine Products | Central Garden vs. Seneca Foods Corp |
| China Mengniu vs. Seneca Foods Corp | China Mengniu vs. Associated British Foods | China Mengniu vs. Natures Sunshine Products | China Mengniu vs. Marfrig Global Foods |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |