Correlation Between Dairy Farm and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Dairy Farm and Corsair Gaming 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 Dairy Farm and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dairy Farm International and Corsair Gaming, you can compare the effects of market volatilities on Dairy Farm and Corsair Gaming 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 Dairy Farm with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dairy Farm and Corsair Gaming.
Diversification Opportunities for Dairy Farm and Corsair Gaming
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dairy and Corsair is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dairy Farm International and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and Dairy Farm 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 Dairy Farm International are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Dairy Farm i.e., Dairy Farm and Corsair Gaming go up and down completely randomly.
Pair Corralation between Dairy Farm and Corsair Gaming
Assuming the 90 days trading horizon Dairy Farm International is expected to generate 0.79 times more return on investment than Corsair Gaming. However, Dairy Farm International is 1.27 times less risky than Corsair Gaming. It trades about 0.04 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.07 per unit of risk. If you would invest 196.00 in Dairy Farm International on August 25, 2024 and sell it today you would earn a total of 42.00 from holding Dairy Farm International or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dairy Farm International vs. Corsair Gaming
Performance |
| Timeline |
| Dairy Farm International |
| Corsair Gaming |
Dairy Farm and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dairy Farm and Corsair Gaming
The main advantage of trading using opposite Dairy Farm and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dairy Farm position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Dairy Farm vs. Loblaw Companies Limited | Dairy Farm vs. Superior Plus Corp | Dairy Farm vs. NMI Holdings | Dairy Farm vs. Origin Agritech |
| Corsair Gaming vs. Media and Games | Corsair Gaming vs. CI GAMES SA | Corsair Gaming vs. Suntory Beverage Food | Corsair Gaming vs. BOSTON BEER A |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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