Correlation Between Stock Exchange and Chiangmai Frozen
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Chiangmai Frozen 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 Stock Exchange and Chiangmai Frozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Chiangmai Frozen Foods, you can compare the effects of market volatilities on Stock Exchange and Chiangmai Frozen 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 Stock Exchange with a short position of Chiangmai Frozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Chiangmai Frozen.
Diversification Opportunities for Stock Exchange and Chiangmai Frozen
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stock and Chiangmai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Chiangmai Frozen Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiangmai Frozen Foods and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Chiangmai Frozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiangmai Frozen Foods has no effect on the direction of Stock Exchange i.e., Stock Exchange and Chiangmai Frozen go up and down completely randomly.
Pair Corralation between Stock Exchange and Chiangmai Frozen
Assuming the 90 days trading horizon Stock Exchange is expected to generate 164.85 times less return on investment than Chiangmai Frozen. But when comparing it to its historical volatility, Stock Exchange Of is 170.87 times less risky than Chiangmai Frozen. It trades about 0.12 of its potential returns per unit of risk. Chiangmai Frozen Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Chiangmai Frozen Foods on August 29, 2024 and sell it today you would lose (20.00) from holding Chiangmai Frozen Foods or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Chiangmai Frozen Foods
Performance |
| Timeline |
Stock Exchange and Chiangmai Frozen Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Chiangmai Frozen Foods
Pair trading matchups for Chiangmai Frozen
Pair Trading with Stock Exchange and Chiangmai Frozen
The main advantage of trading using opposite Stock Exchange and Chiangmai Frozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Chiangmai Frozen 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 Chiangmai Frozen will offset losses from the drop in Chiangmai Frozen's long position.| Stock Exchange vs. Copperwired Public | Stock Exchange vs. DOHOME | Stock Exchange vs. Porn Prom Metal | Stock Exchange vs. 3BB INTERNET INFRASTRUCTURE |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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