Correlation Between China Health and Centr Brands
Can any of the company-specific risk be diversified away by investing in both China Health and Centr Brands 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 Health and Centr Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Industries and Centr Brands Corp, you can compare the effects of market volatilities on China Health and Centr Brands 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 Health with a short position of Centr Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and Centr Brands.
Diversification Opportunities for China Health and Centr Brands
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Centr is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Health Industries and Centr Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centr Brands Corp and China Health 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 Health Industries are associated (or correlated) with Centr Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centr Brands Corp has no effect on the direction of China Health i.e., China Health and Centr Brands go up and down completely randomly.
Pair Corralation between China Health and Centr Brands
If you would invest 33.00 in China Health Industries on September 1, 2024 and sell it today you would earn a total of 0.00 from holding China Health Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Health Industries vs. Centr Brands Corp
Performance |
| Timeline |
| China Health Industries |
| Centr Brands Corp |
China Health and Centr Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Health and Centr Brands
The main advantage of trading using opposite China Health and Centr Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, Centr Brands 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 Centr Brands will offset losses from the drop in Centr Brands' long position.| China Health vs. Stagwell | China Health vs. The Mosaic | China Health vs. Balchem | China Health vs. Avient Corp |
| Centr Brands vs. Bionoid Pharma | Centr Brands vs. CTT Pharmaceutical Holdings | Centr Brands vs. Alterola Biotech | Centr Brands vs. Canntab Therapeutics Limited |
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..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |