Correlation Between Chlitina Holding and Grape King

Can any of the company-specific risk be diversified away by investing in both Chlitina Holding and Grape King 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 Chlitina Holding and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chlitina Holding and Grape King Bio, you can compare the effects of market volatilities on Chlitina Holding and Grape King 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 Chlitina Holding with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chlitina Holding and Grape King.

Diversification Opportunities for Chlitina Holding and Grape King

-0.41

Correlation Coefficient

Chlitina Holding  Grape King

Very good diversification

The 3 months correlation between Chlitina and Grape is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chlitina Holding and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Chlitina Holding 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 Chlitina Holding are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Chlitina Holding i.e., Chlitina Holding and Grape King go up and down completely randomly.

Pair Corralation between Chlitina Holding and Grape King

Assuming the 90 days trading horizon Chlitina Holding is expected to under-perform the Grape King. In addition to that, Chlitina Holding is 1.39 times more volatile than Grape King Bio. It trades about -0.06 of its total potential returns per unit of risk. Grape King Bio is currently generating about 0.0 per unit of volatility. If you would invest  15,950  in Grape King Bio on September 17, 2024 and sell it today you would lose (750.00) from holding Grape King Bio or give up 4.7% of portfolio value over 90 days.

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

Chlitina Holding  vs.  Grape King Bio

Chlitina Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chlitina Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Grape King Bio

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grape King Bio are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Grape King is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Chlitina Holding and Grape King

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

The idea behind Chlitina Holding and Grape King Bio 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.