Correlation Between Scheid Vineyards and CHS
Can any of the company-specific risk be diversified away by investing in both Scheid Vineyards 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 Scheid Vineyards and CHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scheid Vineyards and CHS Inc CL, you can compare the effects of market volatilities on Scheid Vineyards 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 Scheid Vineyards with a short position of CHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scheid Vineyards and CHS.
Diversification Opportunities for Scheid Vineyards and CHS
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scheid and CHS is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Scheid Vineyards and CHS Inc CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CL and Scheid Vineyards 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 Scheid Vineyards 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 CL has no effect on the direction of Scheid Vineyards i.e., Scheid Vineyards and CHS go up and down completely randomly.
Pair Corralation between Scheid Vineyards and CHS
Given the investment horizon of 90 days Scheid Vineyards is expected to under-perform the CHS. In addition to that, Scheid Vineyards is 1.51 times more volatile than CHS Inc CL. It trades about -0.15 of its total potential returns per unit of risk. CHS Inc CL is currently generating about 0.06 per unit of volatility. If you would invest 2,273 in CHS Inc CL on August 27, 2024 and sell it today you would earn a total of 338.00 from holding CHS Inc CL or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 25.49% |
| Values | Daily Returns |
Scheid Vineyards vs. CHS Inc CL
Performance |
| Timeline |
| Scheid Vineyards |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CHS Inc CL |
Scheid Vineyards and CHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scheid Vineyards and CHS
The main advantage of trading using opposite Scheid Vineyards and CHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scheid Vineyards 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.| Scheid Vineyards vs. Willamette Valley Vineyards | Scheid Vineyards vs. Crimson Wine | Scheid Vineyards vs. Alico Inc | Scheid Vineyards vs. Mondee Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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