Correlation Between CHAOSUA FOODS and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both CHAOSUA FOODS and Stock Exchange 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 Stock Exchange 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 Stock Exchange Of, you can compare the effects of market volatilities on CHAOSUA FOODS and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAOSUA FOODS and Stock Exchange.
Diversification Opportunities for CHAOSUA FOODS and Stock Exchange
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHAOSUA and Stock is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CHAOSUA FOODS INDUSTRY and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of CHAOSUA FOODS i.e., CHAOSUA FOODS and Stock Exchange go up and down completely randomly.
Pair Corralation between CHAOSUA FOODS and Stock Exchange
Assuming the 90 days trading horizon CHAOSUA FOODS INDUSTRY is expected to under-perform the Stock Exchange. In addition to that, CHAOSUA FOODS is 3.8 times more volatile than Stock Exchange Of. It trades about -0.46 of its total potential returns per unit of risk. Stock Exchange Of is currently generating about -0.26 per unit of volatility. If you would invest 147,032 in Stock Exchange Of on September 22, 2024 and sell it today you would lose (10,525) from holding Stock Exchange Of or give up 7.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHAOSUA FOODS INDUSTRY vs. Stock Exchange Of
Performance |
| Timeline |
CHAOSUA FOODS and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
CHAOSUA FOODS INDUSTRY
Pair trading matchups for CHAOSUA FOODS
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with CHAOSUA FOODS and Stock Exchange
The main advantage of trading using opposite CHAOSUA FOODS and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAOSUA FOODS position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange'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 |
| Stock Exchange vs. Earth Tech Environment | Stock Exchange vs. Simat Technologies Public | Stock Exchange vs. Silicon Craft Technology | Stock Exchange vs. Taokaenoi Food Marketing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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