Correlation Between Cresud SACIF and Chanson International

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

By analyzing existing cross correlation between Cresud SACIF y and Chanson International Holding, you can compare the effects of market volatilities on Cresud SACIF and Chanson International 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 Cresud SACIF with a short position of Chanson International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Chanson International.

Diversification Opportunities for Cresud SACIF and Chanson International

0.73

Correlation Coefficient

Cresud SACIF  Chanson International

Poor diversification

The 3 months correlation between Cresud and Chanson is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Chanson International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chanson International and Cresud SACIF 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 Cresud SACIF y are associated (or correlated) with Chanson International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chanson International has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Chanson International go up and down completely randomly.

Pair Corralation between Cresud SACIF and Chanson International

Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.2 times more return on investment than Chanson International. However, Cresud SACIF y is 4.92 times less risky than Chanson International. It trades about -0.06 of its potential returns per unit of risk. Chanson International Holding is currently generating about -0.22 per unit of risk. If you would invest  1,223  in Cresud SACIF y on December 20, 2024 and sell it today you would lose (133.00) from holding Cresud SACIF y or give up 10.87% of portfolio value over 90 days.

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

Cresud SACIF y  vs.  Chanson International Holding

Cresud SACIF y

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cresud SACIF y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Chanson International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chanson International Holding 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 basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cresud SACIF and Chanson International

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

The idea behind Cresud SACIF y and Chanson International Holding 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.