Correlation Between CHAOSUA FOODS and Workpoint Entertainment

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CHAOSUA FOODS INDUSTRY  vs.  Workpoint Entertainment Public

 Performance 
       Timeline  
CHAOSUA FOODS INDUSTRY 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days CHAOSUA FOODS INDUSTRY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, CHAOSUA FOODS is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Workpoint Entertainment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Workpoint Entertainment Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.
The idea behind CHAOSUA FOODS INDUSTRY and Workpoint Entertainment Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Fundamental Analysis
View fundamental data based on most recent published financial statements
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum