Correlation Between Scheid Vineyards and CHS

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

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

Diversification Opportunities for Scheid Vineyards and CHS

0.0

Correlation Coefficient

Scheid Vineyards  CHS

Pay attention - limited upside

The 3 months correlation between Scheid and CHS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scheid Vineyards and CHS Inc CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CL and Scheid Vineyards 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 Scheid Vineyards are associated (or correlated) with CHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHS Inc CL has no effect on the direction of Scheid Vineyards i.e., Scheid Vineyards and CHS go up and down completely randomly.

Pair Corralation between Scheid Vineyards and CHS

If you would invest  1,500  in Scheid Vineyards on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Scheid Vineyards or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Scheid Vineyards  vs.  CHS Inc CL

Scheid Vineyards

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scheid Vineyards has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Scheid Vineyards is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CHS Inc CL

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CHS Inc CL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, CHS is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Scheid Vineyards and CHS

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

The idea behind Scheid Vineyards and CHS Inc CL 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.