Correlation Between Meiji Holdings and China Feihe
Can any of the company-specific risk be diversified away by investing in both Meiji Holdings 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 Meiji Holdings and China Feihe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiji Holdings Co and China Feihe Limited, you can compare the effects of market volatilities on Meiji Holdings 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 Meiji Holdings with a short position of China Feihe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiji Holdings and China Feihe.
Diversification Opportunities for Meiji Holdings and China Feihe
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meiji and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Meiji Holdings Co 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 Meiji Holdings 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 Meiji Holdings Co 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 Meiji Holdings i.e., Meiji Holdings and China Feihe go up and down completely randomly.
Pair Corralation between Meiji Holdings and China Feihe
If you would invest 980.00 in Meiji Holdings Co on September 7, 2025 and sell it today you would earn a total of 8.00 from holding Meiji Holdings Co or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiji Holdings Co vs. China Feihe Limited
Performance |
| Timeline |
| Meiji Holdings |
| China Feihe Limited |
Meiji Holdings and China Feihe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiji Holdings and China Feihe
The main advantage of trading using opposite Meiji Holdings and China Feihe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiji Holdings 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.| Meiji Holdings vs. Danone PK | Meiji Holdings vs. Danone SA | Meiji Holdings vs. Kraft Heinz Co | Meiji Holdings vs. Kellanova |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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