Correlation Between New Generation and Church Crawford
Can any of the company-specific risk be diversified away by investing in both New Generation and Church Crawford 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 New Generation and Church Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Generation Consumer and Church Crawford, you can compare the effects of market volatilities on New Generation and Church Crawford 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 New Generation with a short position of Church Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Generation and Church Crawford.
Diversification Opportunities for New Generation and Church Crawford
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Church is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding New Generation Consumer and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and New Generation 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 New Generation Consumer are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of New Generation i.e., New Generation and Church Crawford go up and down completely randomly.
Pair Corralation between New Generation and Church Crawford
Given the investment horizon of 90 days New Generation Consumer is expected to under-perform the Church Crawford. But the pink sheet apears to be less risky and, when comparing its historical volatility, New Generation Consumer is 1.08 times less risky than Church Crawford. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Church Crawford is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 0.13 in Church Crawford on September 1, 2024 and sell it today you would earn a total of 0.10 from holding Church Crawford or generate 76.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
New Generation Consumer vs. Church Crawford
Performance |
| Timeline |
| New Generation Consumer |
| Church Crawford |
New Generation and Church Crawford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Generation and Church Crawford
The main advantage of trading using opposite New Generation and Church Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Generation position performs unexpectedly, Church Crawford 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 Church Crawford will offset losses from the drop in Church Crawford's long position.| New Generation vs. Xtra Energy Corp | New Generation vs. Arsenal Digital Holdings | New Generation vs. UHF Logistics Group | New Generation vs. XCana Petroleum |
| Church Crawford vs. American Leisure Holdings | Church Crawford vs. Supurva Healthcare Group | Church Crawford vs. China Health Management | Church Crawford vs. Embrace Change Acquisition |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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