Correlation Between Mondelez International and China Distance
Can any of the company-specific risk be diversified away by investing in both Mondelez International and China Distance 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 Mondelez International and China Distance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondelez International and China Distance Education, you can compare the effects of market volatilities on Mondelez International and China Distance 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 Mondelez International with a short position of China Distance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondelez International and China Distance.
Diversification Opportunities for Mondelez International and China Distance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mondelez and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mondelez International and China Distance Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Distance Education and Mondelez International 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 Mondelez International are associated (or correlated) with China Distance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Distance Education has no effect on the direction of Mondelez International i.e., Mondelez International and China Distance go up and down completely randomly.
Pair Corralation between Mondelez International and China Distance
If you would invest (100.00) in China Distance Education on January 20, 2024 and sell it today you would earn a total of 100.00 from holding China Distance Education or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mondelez International vs. China Distance Education
Performance |
| Timeline |
| Mondelez International |
| China Distance Education |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mondelez International and China Distance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondelez International and China Distance
The main advantage of trading using opposite Mondelez International and China Distance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondelez International position performs unexpectedly, China Distance 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 Distance will offset losses from the drop in China Distance's long position.| Mondelez International vs. Green Globe International | Mondelez International vs. Greenlane Holdings | Mondelez International vs. RLX Technology | Mondelez International vs. 22nd Century Group |
| China Distance vs. Nabors Industries | China Distance vs. Uber Technologies | China Distance vs. Q2 Holdings | China Distance vs. Cabo Drilling Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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