Correlation Between Ingles Markets and CHS
Can any of the company-specific risk be diversified away by investing in both Ingles Markets 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 Ingles Markets and CHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingles Markets Incorporated and CHS Inc CP, you can compare the effects of market volatilities on Ingles Markets 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 Ingles Markets with a short position of CHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingles Markets and CHS.
Diversification Opportunities for Ingles Markets and CHS
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingles and CHS is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ingles Markets Incorporated 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 Ingles Markets 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 Ingles Markets Incorporated 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 Ingles Markets i.e., Ingles Markets and CHS go up and down completely randomly.
Pair Corralation between Ingles Markets and CHS
Assuming the 90 days horizon Ingles Markets Incorporated is expected to under-perform the CHS. In addition to that, Ingles Markets is 1.67 times more volatile than CHS Inc CP. It trades about -0.19 of its total potential returns per unit of risk. CHS Inc CP is currently generating about 0.07 per unit of volatility. If you would invest 2,811 in CHS Inc CP on October 20, 2024 and sell it today you would earn a total of 33.00 from holding CHS Inc CP or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingles Markets Incorporated vs. CHS Inc CP
Performance |
| Timeline |
| Ingles Markets |
| CHS Inc CP |
Ingles Markets and CHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingles Markets and CHS
The main advantage of trading using opposite Ingles Markets and CHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingles Markets 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.| Ingles Markets vs. Weis Markets | Ingles Markets vs. Natural Grocers by | Ingles Markets vs. Sendas Distribuidora SA | Ingles Markets vs. Grocery Outlet Holding |
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.
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