Correlation Between Else Nutrition and Calbee

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

By analyzing existing cross correlation between Else Nutrition Holdings and Calbee Inc, you can compare the effects of market volatilities on Else Nutrition and Calbee 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 Else Nutrition with a short position of Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Else Nutrition and Calbee.

Diversification Opportunities for Else Nutrition and Calbee

0.49

Correlation Coefficient

Else Nutrition  Calbee

Very weak diversification

The 3 months correlation between Else and Calbee is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Else Nutrition Holdings and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc and Else Nutrition 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 Else Nutrition Holdings are associated (or correlated) with Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Else Nutrition i.e., Else Nutrition and Calbee go up and down completely randomly.

Pair Corralation between Else Nutrition and Calbee

Assuming the 90 days horizon Else Nutrition Holdings is expected to under-perform the Calbee. In addition to that, Else Nutrition is 3.9 times more volatile than Calbee Inc. It trades about -0.02 of its total potential returns per unit of risk. Calbee Inc is currently generating about 0.01 per unit of volatility. If you would invest  471.00  in Calbee Inc on October 23, 2024 and sell it today you would lose (8.00) from holding Calbee Inc or give up 1.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.74%
Values	Daily Returns

Else Nutrition Holdings  vs.  Calbee Inc

Else Nutrition Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Else Nutrition Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Else Nutrition reported solid returns over the last few months and may actually be approaching a breakup point.

Calbee Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calbee Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Else Nutrition and Calbee

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

The idea behind Else Nutrition Holdings and Calbee Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.