Correlation Between China Feihe and Integrated Biopharma
Can any of the company-specific risk be diversified away by investing in both China Feihe and Integrated Biopharma 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 China Feihe and Integrated Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Feihe Limited and Integrated Biopharma, you can compare the effects of market volatilities on China Feihe and Integrated Biopharma 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 China Feihe with a short position of Integrated Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Feihe and Integrated Biopharma.
Diversification Opportunities for China Feihe and Integrated Biopharma
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Integrated is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Feihe Limited and Integrated Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Biopharma and China Feihe 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 China Feihe Limited are associated (or correlated) with Integrated Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Biopharma has no effect on the direction of China Feihe i.e., China Feihe and Integrated Biopharma go up and down completely randomly.
Pair Corralation between China Feihe and Integrated Biopharma
Assuming the 90 days horizon China Feihe Limited is expected to generate 0.9 times more return on investment than Integrated Biopharma. However, China Feihe Limited is 1.11 times less risky than Integrated Biopharma. It trades about 0.07 of its potential returns per unit of risk. Integrated Biopharma is currently generating about 0.02 per unit of risk. If you would invest 18.00 in China Feihe Limited on September 2, 2024 and sell it today you would earn a total of 52.00 from holding China Feihe Limited or generate 288.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.85% |
| Values | Daily Returns |
China Feihe Limited vs. Integrated Biopharma
Performance |
| Timeline |
| China Feihe Limited |
| Integrated Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Feihe and Integrated Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Feihe and Integrated Biopharma
The main advantage of trading using opposite China Feihe and Integrated Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Feihe position performs unexpectedly, Integrated Biopharma 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 Integrated Biopharma will offset losses from the drop in Integrated Biopharma's long position.| China Feihe vs. WH Group Limited | China Feihe vs. BG Foods | China Feihe vs. JBS SA | China Feihe vs. Marfrig Global Foods |
| Integrated Biopharma vs. Premier Foods Plc | Integrated Biopharma vs. Torque Lifestyle Brands | Integrated Biopharma vs. Naturally Splendid Enterprises | Integrated Biopharma vs. Aryzta AG PK |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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