Correlation Between Integrated Biopharma and China Feihe
Can any of the company-specific risk be diversified away by investing in both Integrated Biopharma and China Feihe 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 Integrated Biopharma and China Feihe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Biopharma and China Feihe Limited, you can compare the effects of market volatilities on Integrated Biopharma and China Feihe 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 Integrated Biopharma with a short position of China Feihe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Biopharma and China Feihe.
Diversification Opportunities for Integrated Biopharma and China Feihe
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and China is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Biopharma and China Feihe Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Feihe Limited and Integrated Biopharma 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 Integrated Biopharma are associated (or correlated) with China Feihe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Feihe Limited has no effect on the direction of Integrated Biopharma i.e., Integrated Biopharma and China Feihe go up and down completely randomly.
Pair Corralation between Integrated Biopharma and China Feihe
Given the investment horizon of 90 days Integrated Biopharma is expected to generate 29.77 times less return on investment than China Feihe. In addition to that, Integrated Biopharma is 1.02 times more volatile than China Feihe Limited. It trades about 0.0 of its total potential returns per unit of risk. China Feihe Limited is currently generating about 0.07 per unit of volatility. If you would invest 18.00 in China Feihe Limited on September 6, 2024 and sell it today you would earn a total of 52.00 from holding China Feihe Limited or generate 288.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 30.16% |
Values | Daily Returns |
Integrated Biopharma vs. China Feihe Limited
Performance |
Timeline |
Integrated Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Feihe Limited |
Integrated Biopharma and China Feihe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integrated Biopharma and China Feihe
The main advantage of trading using opposite Integrated Biopharma and China Feihe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Biopharma position performs unexpectedly, China Feihe 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 China Feihe will offset losses from the drop in China Feihe's long position.Integrated Biopharma vs. Premier Foods Plc | Integrated Biopharma vs. Torque Lifestyle Brands | Integrated Biopharma vs. Naturally Splendid Enterprises | Integrated Biopharma vs. Aryzta AG PK |
China Feihe vs. WH Group Limited | China Feihe vs. BG Foods | China Feihe vs. JBS SA | China Feihe vs. Marfrig Global Foods |
Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |