Correlation Between Chiba Bank and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both Chiba Bank and AMCON Distributing 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 Chiba Bank and AMCON Distributing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank Ltd and AMCON Distributing, you can compare the effects of market volatilities on Chiba Bank and AMCON Distributing 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 Chiba Bank with a short position of AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and AMCON Distributing.
Diversification Opportunities for Chiba Bank and AMCON Distributing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chiba and AMCON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing and Chiba Bank 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 Chiba Bank Ltd are associated (or correlated) with AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Chiba Bank i.e., Chiba Bank and AMCON Distributing go up and down completely randomly.
Pair Corralation between Chiba Bank and AMCON Distributing
Assuming the 90 days horizon Chiba Bank Ltd is expected to generate 0.16 times more return on investment than AMCON Distributing. However, Chiba Bank Ltd is 6.08 times less risky than AMCON Distributing. It trades about 0.02 of its potential returns per unit of risk. AMCON Distributing is currently generating about -0.01 per unit of risk. If you would invest 3,704 in Chiba Bank Ltd on January 7, 2025 and sell it today you would earn a total of 66.00 from holding Chiba Bank Ltd or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.63% |
| Values | Daily Returns |
Chiba Bank Ltd vs. AMCON Distributing
Performance |
| Timeline |
| Chiba Bank |
| AMCON Distributing |
Chiba Bank and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and AMCON Distributing
The main advantage of trading using opposite Chiba Bank and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| Chiba Bank vs. First Hawaiian | Chiba Bank vs. Central Pacific Financial | Chiba Bank vs. Territorial Bancorp | Chiba Bank vs. Comerica |
| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
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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