Correlation Between Chiangmai Frozen and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Chiangmai Frozen and Dow Jones 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 Chiangmai Frozen and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiangmai Frozen Foods and Dow Jones Industrial, you can compare the effects of market volatilities on Chiangmai Frozen and Dow Jones 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 Chiangmai Frozen with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiangmai Frozen and Dow Jones.
Diversification Opportunities for Chiangmai Frozen and Dow Jones
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chiangmai and Dow is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chiangmai Frozen Foods and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Chiangmai Frozen 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 Chiangmai Frozen Foods are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Chiangmai Frozen i.e., Chiangmai Frozen and Dow Jones go up and down completely randomly.
Pair Corralation between Chiangmai Frozen and Dow Jones
Assuming the 90 days horizon Chiangmai Frozen Foods is expected to generate 100.64 times more return on investment than Dow Jones. However, Chiangmai Frozen is 100.64 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 210.00 in Chiangmai Frozen Foods on August 29, 2024 and sell it today you would lose (2.00) from holding Chiangmai Frozen Foods or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.74% |
| Values | Daily Returns |
Chiangmai Frozen Foods vs. Dow Jones Industrial
Performance |
| Timeline |
Chiangmai Frozen and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Chiangmai Frozen Foods
Pair trading matchups for Chiangmai Frozen
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Chiangmai Frozen and Dow Jones
The main advantage of trading using opposite Chiangmai Frozen and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiangmai Frozen position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Chiangmai Frozen vs. Chumporn Palm Oil | Chiangmai Frozen vs. GFPT Public | Chiangmai Frozen vs. Crown Seal Public | Chiangmai Frozen vs. Dynasty Ceramic Public |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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