Correlation Between CHAOSUA FOODS and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both CHAOSUA FOODS and Workpoint Entertainment 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 CHAOSUA FOODS and Workpoint Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHAOSUA FOODS INDUSTRY and Workpoint Entertainment Public, you can compare the effects of market volatilities on CHAOSUA FOODS and Workpoint Entertainment 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 CHAOSUA FOODS with a short position of Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHAOSUA FOODS and Workpoint Entertainment.
Diversification Opportunities for CHAOSUA FOODS and Workpoint Entertainment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CHAOSUA and Workpoint is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CHAOSUA FOODS INDUSTRY and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment and CHAOSUA FOODS 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 CHAOSUA FOODS INDUSTRY are associated (or correlated) with Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of CHAOSUA FOODS i.e., CHAOSUA FOODS and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between CHAOSUA FOODS and Workpoint Entertainment
Assuming the 90 days trading horizon CHAOSUA FOODS INDUSTRY is expected to generate 2.03 times more return on investment than Workpoint Entertainment. However, CHAOSUA FOODS is 2.03 times more volatile than Workpoint Entertainment Public. It trades about -0.03 of its potential returns per unit of risk. Workpoint Entertainment Public is currently generating about -0.25 per unit of risk. If you would invest 548.00 in CHAOSUA FOODS INDUSTRY on April 22, 2025 and sell it today you would lose (28.00) from holding CHAOSUA FOODS INDUSTRY or give up 5.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CHAOSUA FOODS INDUSTRY vs. Workpoint Entertainment Public
Performance |
Timeline |
CHAOSUA FOODS INDUSTRY |
Workpoint Entertainment |
CHAOSUA FOODS and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CHAOSUA FOODS and Workpoint Entertainment
The main advantage of trading using opposite CHAOSUA FOODS and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAOSUA FOODS position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment's long position.CHAOSUA FOODS vs. MFC Asset Management | CHAOSUA FOODS vs. PTT Global Chemical | CHAOSUA FOODS vs. Sri panwa Hospitality | CHAOSUA FOODS vs. Pato Chemical Industry |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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