Correlation Between SUPER HI and Chanson International

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

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

Diversification Opportunities for SUPER HI and Chanson International

-0.45

Correlation Coefficient

SUPER HI  Chanson International

Very good diversification

The 3 months correlation between SUPER and Chanson is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SUPER HI INTERNATIONAL and Chanson International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chanson International and SUPER HI 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 SUPER HI INTERNATIONAL 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 SUPER HI i.e., SUPER HI and Chanson International go up and down completely randomly.

Pair Corralation between SUPER HI and Chanson International

Considering the 90-day investment horizon SUPER HI is expected to generate 6.15 times less return on investment than Chanson International. But when comparing it to its historical volatility, SUPER HI INTERNATIONAL is 5.23 times less risky than Chanson International. It trades about 0.05 of its potential returns per unit of risk. Chanson International Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  245.00  in Chanson International Holding on October 9, 2024 and sell it today you would earn a total of  240.00  from holding Chanson International Holding or generate 97.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	35.96%
Values	Daily Returns

SUPER HI INTERNATIONAL  vs.  Chanson International Holding

SUPER HI INTERNATIONAL

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SUPER HI INTERNATIONAL are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, SUPER HI disclosed solid returns over the last few months and may actually be approaching a breakup point.

Chanson International

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with SUPER HI and Chanson International

The main advantage of trading using opposite SUPER HI and Chanson International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER HI 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 SUPER HI INTERNATIONAL 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.