Correlation Between City Sports and Chiangmai Frozen
Can any of the company-specific risk be diversified away by investing in both City Sports and Chiangmai Frozen 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 City Sports and Chiangmai Frozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Sports and and Chiangmai Frozen Foods, you can compare the effects of market volatilities on City Sports and Chiangmai Frozen 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 City Sports with a short position of Chiangmai Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Sports and Chiangmai Frozen.
Diversification Opportunities for City Sports and Chiangmai Frozen
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and Chiangmai is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding City Sports and and Chiangmai Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiangmai Frozen Foods and City Sports 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 City Sports and are associated (or correlated) with Chiangmai Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiangmai Frozen Foods has no effect on the direction of City Sports i.e., City Sports and Chiangmai Frozen go up and down completely randomly.
Pair Corralation between City Sports and Chiangmai Frozen
Assuming the 90 days trading horizon City Sports and is expected to generate 0.13 times more return on investment than Chiangmai Frozen. However, City Sports and is 7.42 times less risky than Chiangmai Frozen. It trades about 0.47 of its potential returns per unit of risk. Chiangmai Frozen Foods is currently generating about -0.36 per unit of risk. If you would invest 8,900 in City Sports and on October 23, 2024 and sell it today you would earn a total of 125.00 from holding City Sports and or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
City Sports and vs. Chiangmai Frozen Foods
Performance |
| Timeline |
| City Sports |
| Chiangmai Frozen Foods |
City Sports and Chiangmai Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Sports and Chiangmai Frozen
The main advantage of trading using opposite City Sports and Chiangmai Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Sports position performs unexpectedly, Chiangmai Frozen 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 Chiangmai Frozen will offset losses from the drop in Chiangmai Frozen's long position.| City Sports vs. Chiangmai Frozen Foods | City Sports vs. Dynasty Ceramic Public | City Sports vs. Castle Peak Holdings | City Sports vs. CPL Group Public |
| Chiangmai Frozen vs. Chumporn Palm Oil | Chiangmai Frozen vs. GFPT Public | Chiangmai Frozen vs. Crown Seal Public | Chiangmai Frozen vs. Dynasty Ceramic Public |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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