Correlation Between Sao Ta and Cuulong Fish

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Can any of the company-specific risk be diversified away by investing in both Sao Ta and Cuulong Fish 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 Sao Ta and Cuulong Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Ta Foods and Cuulong Fish JSC, you can compare the effects of market volatilities on Sao Ta and Cuulong Fish 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 Sao Ta with a short position of Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Ta and Cuulong Fish.

Diversification Opportunities for Sao Ta and Cuulong Fish

SaoCuulongDiversified AwaySaoCuulongDiversified Away100%
-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sao and Cuulong is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sao Ta Foods and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish JSC and Sao Ta 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 Sao Ta Foods are associated (or correlated) with Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of Sao Ta i.e., Sao Ta and Cuulong Fish go up and down completely randomly.

Pair Corralation between Sao Ta and Cuulong Fish

Assuming the 90 days trading horizon Sao Ta Foods is expected to generate 0.86 times more return on investment than Cuulong Fish. However, Sao Ta Foods is 1.16 times less risky than Cuulong Fish. It trades about 0.06 of its potential returns per unit of risk. Cuulong Fish JSC is currently generating about 0.01 per unit of risk. If you would invest  3,282,792  in Sao Ta Foods on November 30, 2024 and sell it today you would earn a total of  1,392,208  from holding Sao Ta Foods or generate 42.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.59%
ValuesDaily Returns

Sao Ta Foods  vs.  Cuulong Fish JSC

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -4-2024
JavaScript chart by amCharts 3.21.15FMC ACL
       Timeline  
Sao Ta Foods 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sao Ta Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Sao Ta is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb45,00046,00047,00048,00049,000
Cuulong Fish JSC 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cuulong Fish JSC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, Cuulong Fish is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11,00011,20011,40011,60011,80012,000

Sao Ta and Cuulong Fish Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.46-1.09-0.72-0.35-0.03680.210.580.951.321.69 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.15FMC ACL
       Returns  

Pair Trading with Sao Ta and Cuulong Fish

The main advantage of trading using opposite Sao Ta and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Ta position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.
The idea behind Sao Ta Foods and Cuulong Fish JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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