Correlation Between Ingredion Incorporated and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Ingredion Incorporated and ATIF Holdings 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 Ingredion Incorporated and ATIF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingredion Incorporated and ATIF Holdings Limited, you can compare the effects of market volatilities on Ingredion Incorporated and ATIF Holdings 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 Ingredion Incorporated with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingredion Incorporated and ATIF Holdings.
Diversification Opportunities for Ingredion Incorporated and ATIF Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingredion and ATIF is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ingredion Incorporated and ATIF Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings Limited and Ingredion Incorporated 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 Ingredion Incorporated are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings Limited has no effect on the direction of Ingredion Incorporated i.e., Ingredion Incorporated and ATIF Holdings go up and down completely randomly.
Pair Corralation between Ingredion Incorporated and ATIF Holdings
Given the investment horizon of 90 days Ingredion Incorporated is expected to under-perform the ATIF Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Ingredion Incorporated is 14.9 times less risky than ATIF Holdings. The stock trades about -0.06 of its potential returns per unit of risk. The ATIF Holdings Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 88.00 in ATIF Holdings Limited on October 26, 2024 and sell it today you would earn a total of 40.00 from holding ATIF Holdings Limited or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingredion Incorporated vs. ATIF Holdings Limited
Performance |
| Timeline |
| Ingredion Incorporated |
| ATIF Holdings Limited |
Ingredion Incorporated and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingredion Incorporated and ATIF Holdings
The main advantage of trading using opposite Ingredion Incorporated and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingredion Incorporated position performs unexpectedly, ATIF Holdings 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.| Ingredion Incorporated vs. Lancaster Colony | Ingredion Incorporated vs. Treehouse Foods | Ingredion Incorporated vs. John B Sanfilippo | Ingredion Incorporated vs. Seneca Foods Corp |
| ATIF Holdings vs. Bridgford Foods | ATIF Holdings vs. Ingredion Incorporated | ATIF Holdings vs. WK Kellogg Co | ATIF Holdings vs. Cementos Pacasmayo SAA |
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 Stocks Directory module to find actively traded stocks across global markets.
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