Correlation Between MFC Asset and CHAOSUA FOODS

Can any of the company-specific risk be diversified away by investing in both MFC Asset and CHAOSUA FOODS 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 MFC Asset and CHAOSUA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MFC Asset Management and CHAOSUA FOODS INDUSTRY, you can compare the effects of market volatilities on MFC Asset and CHAOSUA FOODS 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 MFC Asset with a short position of CHAOSUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFC Asset and CHAOSUA FOODS.

Diversification Opportunities for MFC Asset and CHAOSUA FOODS

-0.05

Correlation Coefficient

MFC Asset  CHAOSUA FOODS

Good diversification

The 3 months correlation between MFC and CHAOSUA is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MFC Asset Management and CHAOSUA FOODS INDUSTRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAOSUA FOODS INDUSTRY and MFC Asset 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 MFC Asset Management are associated (or correlated) with CHAOSUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAOSUA FOODS INDUSTRY has no effect on the direction of MFC Asset i.e., MFC Asset and CHAOSUA FOODS go up and down completely randomly.

Pair Corralation between MFC Asset and CHAOSUA FOODS

Assuming the 90 days trading horizon MFC Asset Management is expected to generate 1.46 times more return on investment than CHAOSUA FOODS. However, MFC Asset is 1.46 times more volatile than CHAOSUA FOODS INDUSTRY. It trades about 0.04 of its potential returns per unit of risk. CHAOSUA FOODS INDUSTRY is currently generating about -0.07 per unit of risk. If you would invest  2,548  in MFC Asset Management on April 24, 2025 and sell it today you would earn a total of  127.00  from holding MFC Asset Management or generate 4.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MFC Asset Management  vs.  CHAOSUA FOODS INDUSTRY

MFC Asset Management

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MFC Asset Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, MFC Asset may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CHAOSUA FOODS INDUSTRY

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHAOSUA FOODS INDUSTRY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with MFC Asset and CHAOSUA FOODS

The main advantage of trading using opposite MFC Asset and CHAOSUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFC Asset position performs unexpectedly, CHAOSUA FOODS 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 CHAOSUA FOODS will offset losses from the drop in CHAOSUA FOODS's long position.

The idea behind MFC Asset Management and CHAOSUA FOODS INDUSTRY 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.