Correlation Between Eastside Distilling and CHS
Can any of the company-specific risk be diversified away by investing in both Eastside Distilling and CHS 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 Eastside Distilling and CHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastside Distilling and CHS Inc CP, you can compare the effects of market volatilities on Eastside Distilling and CHS 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 Eastside Distilling with a short position of CHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastside Distilling and CHS.
Diversification Opportunities for Eastside Distilling and CHS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastside and CHS is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eastside Distilling and CHS Inc CP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CP and Eastside Distilling 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 Eastside Distilling are associated (or correlated) with CHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHS Inc CP has no effect on the direction of Eastside Distilling i.e., Eastside Distilling and CHS go up and down completely randomly.
Pair Corralation between Eastside Distilling and CHS
Given the investment horizon of 90 days Eastside Distilling is expected to generate 9.04 times more return on investment than CHS. However, Eastside Distilling is 9.04 times more volatile than CHS Inc CP. It trades about 0.02 of its potential returns per unit of risk. CHS Inc CP is currently generating about -0.01 per unit of risk. If you would invest 126.00 in Eastside Distilling on September 14, 2024 and sell it today you would lose (50.49) from holding Eastside Distilling or give up 40.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Eastside Distilling vs. CHS Inc CP
Performance |
| Timeline |
| Eastside Distilling |
| CHS Inc CP |
Eastside Distilling and CHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastside Distilling and CHS
The main advantage of trading using opposite Eastside Distilling and CHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastside Distilling position performs unexpectedly, CHS 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 CHS will offset losses from the drop in CHS's long position.| Eastside Distilling vs. Iconic Brands | Eastside Distilling vs. Andrew Peller Limited | Eastside Distilling vs. Splash Beverage Group | Eastside Distilling vs. Fresh Grapes LLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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