Correlation Between Bio Meat and Spring Ventures

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

By analyzing existing cross correlation between Bio Meat Foodtech and Spring Ventures, you can compare the effects of market volatilities on Bio Meat and Spring Ventures 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 Bio Meat with a short position of Spring Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Meat and Spring Ventures.

Diversification Opportunities for Bio Meat and Spring Ventures

0.36

Correlation Coefficient

Bio Meat  Spring Ventures

Weak diversification

The 3 months correlation between Bio and Spring is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bio Meat Foodtech and Spring Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Ventures and Bio Meat 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 Bio Meat Foodtech are associated (or correlated) with Spring Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Ventures has no effect on the direction of Bio Meat i.e., Bio Meat and Spring Ventures go up and down completely randomly.

Pair Corralation between Bio Meat and Spring Ventures

Assuming the 90 days trading horizon Bio Meat Foodtech is expected to under-perform the Spring Ventures. In addition to that, Bio Meat is 1.06 times more volatile than Spring Ventures. It trades about -0.11 of its total potential returns per unit of risk. Spring Ventures is currently generating about 0.01 per unit of volatility. If you would invest  53,670  in Spring Ventures on August 24, 2025 and sell it today you would lose (120.00) from holding Spring Ventures or give up 0.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	84.31%
Values	Daily Returns

Bio Meat Foodtech  vs.  Spring Ventures

Bio Meat Foodtech

Risk-Adjusted Performance

Weakest

Over the last 90 days Bio Meat Foodtech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Spring Ventures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Spring Ventures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Spring Ventures is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bio Meat and Spring Ventures

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

The idea behind Bio Meat Foodtech and Spring Ventures 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.