Correlation Between China Feihe and Becle SA
Can any of the company-specific risk be diversified away by investing in both China Feihe and Becle SA 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 China Feihe and Becle SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Feihe Limited and Becle SA de, you can compare the effects of market volatilities on China Feihe and Becle SA 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 China Feihe with a short position of Becle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Feihe and Becle SA.
Diversification Opportunities for China Feihe and Becle SA
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Becle is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Feihe Limited and Becle SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becle SA de and China Feihe 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 China Feihe Limited are associated (or correlated) with Becle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becle SA de has no effect on the direction of China Feihe i.e., China Feihe and Becle SA go up and down completely randomly.
Pair Corralation between China Feihe and Becle SA
Assuming the 90 days horizon China Feihe Limited is expected to under-perform the Becle SA. But the pink sheet apears to be less risky and, when comparing its historical volatility, China Feihe Limited is 2.56 times less risky than Becle SA. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Becle SA de is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Becle SA de on August 14, 2025 and sell it today you would earn a total of 25.00 from holding Becle SA de or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Feihe Limited vs. Becle SA de
Performance |
| Timeline |
| China Feihe Limited |
| Becle SA de |
China Feihe and Becle SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Feihe and Becle SA
The main advantage of trading using opposite China Feihe and Becle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Feihe position performs unexpectedly, Becle SA 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 Becle SA will offset losses from the drop in Becle SA's long position.| China Feihe vs. Nissin Foods Holdings | China Feihe vs. Gruma SAB de | China Feihe vs. Meiji Holdings Co | China Feihe vs. Emmi AG |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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