Correlation Between Charoen Pokphand and MOWI ASA
Can any of the company-specific risk be diversified away by investing in both Charoen Pokphand and MOWI ASA 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 Charoen Pokphand and MOWI ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charoen Pokphand Foods and MOWI ASA SPADR, you can compare the effects of market volatilities on Charoen Pokphand and MOWI ASA 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 Charoen Pokphand with a short position of MOWI ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charoen Pokphand and MOWI ASA.
Diversification Opportunities for Charoen Pokphand and MOWI ASA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Charoen and MOWI is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Charoen Pokphand Foods and MOWI ASA SPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOWI ASA SPADR and Charoen Pokphand 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 Charoen Pokphand Foods are associated (or correlated) with MOWI ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOWI ASA SPADR has no effect on the direction of Charoen Pokphand i.e., Charoen Pokphand and MOWI ASA go up and down completely randomly.
Pair Corralation between Charoen Pokphand and MOWI ASA
Assuming the 90 days trading horizon Charoen Pokphand Foods is expected to under-perform the MOWI ASA. In addition to that, Charoen Pokphand is 1.91 times more volatile than MOWI ASA SPADR. It trades about -0.18 of its total potential returns per unit of risk. MOWI ASA SPADR is currently generating about -0.27 per unit of volatility. If you would invest 1,720 in MOWI ASA SPADR on September 24, 2024 and sell it today you would lose (100.00) from holding MOWI ASA SPADR or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charoen Pokphand Foods vs. MOWI ASA SPADR
Performance |
| Timeline |
| Charoen Pokphand Foods |
| MOWI ASA SPADR |
Charoen Pokphand and MOWI ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charoen Pokphand and MOWI ASA
The main advantage of trading using opposite Charoen Pokphand and MOWI ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charoen Pokphand position performs unexpectedly, MOWI ASA 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 MOWI ASA will offset losses from the drop in MOWI ASA's long position.| Charoen Pokphand vs. Archer Daniels Midland | Charoen Pokphand vs. Tyson Foods | Charoen Pokphand vs. Wilmar International Limited | Charoen Pokphand vs. MOWI ASA SPADR |
| MOWI ASA vs. Archer Daniels Midland | MOWI ASA vs. Tyson Foods | MOWI ASA vs. Wilmar International Limited | MOWI ASA vs. Mowi ASA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |