Correlation Between CHAOSUA FOODS and MFC Industrial
Can any of the company-specific risk be diversified away by investing in both CHAOSUA FOODS and MFC Industrial 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 CHAOSUA FOODS and MFC Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHAOSUA FOODS INDUSTRY and MFC Industrial Investment, you can compare the effects of market volatilities on CHAOSUA FOODS and MFC Industrial 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 CHAOSUA FOODS with a short position of MFC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAOSUA FOODS and MFC Industrial.
Diversification Opportunities for CHAOSUA FOODS and MFC Industrial
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHAOSUA and MFC is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CHAOSUA FOODS INDUSTRY and MFC Industrial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Industrial Investment and CHAOSUA FOODS 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 CHAOSUA FOODS INDUSTRY are associated (or correlated) with MFC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Industrial Investment has no effect on the direction of CHAOSUA FOODS i.e., CHAOSUA FOODS and MFC Industrial go up and down completely randomly.
Pair Corralation between CHAOSUA FOODS and MFC Industrial
Assuming the 90 days trading horizon CHAOSUA FOODS INDUSTRY is expected to under-perform the MFC Industrial. In addition to that, CHAOSUA FOODS is 2.94 times more volatile than MFC Industrial Investment. It trades about -0.37 of its total potential returns per unit of risk. MFC Industrial Investment is currently generating about 0.39 per unit of volatility. If you would invest 619.00 in MFC Industrial Investment on August 27, 2024 and sell it today you would earn a total of 51.00 from holding MFC Industrial Investment or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHAOSUA FOODS INDUSTRY vs. MFC Industrial Investment
Performance |
| Timeline |
| CHAOSUA FOODS INDUSTRY |
| MFC Industrial Investment |
CHAOSUA FOODS and MFC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHAOSUA FOODS and MFC Industrial
The main advantage of trading using opposite CHAOSUA FOODS and MFC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAOSUA FOODS position performs unexpectedly, MFC Industrial 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 MFC Industrial will offset losses from the drop in MFC Industrial's long position.| CHAOSUA FOODS vs. Delta Electronics Public | CHAOSUA FOODS vs. Delta Electronics Public | CHAOSUA FOODS vs. Airports of Thailand | CHAOSUA FOODS vs. Airports of Thailand |
| MFC Industrial vs. MFC Nichada Thani Property | MFC Industrial vs. LH Shopping Centers | MFC Industrial vs. MFC Strategic Storage | MFC Industrial vs. HEMARAJ INDUSTRIAL PROPERTY |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |