Correlation Between MPX International and CHS

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

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

Diversification Opportunities for MPX International and CHS

0.04

Correlation Coefficient

MPX International  CHS

Significant diversification

The 3 months correlation between MPX and CHS is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MPX International Corp and CHS Inc CP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CP and MPX 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 MPX International Corp 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 CP has no effect on the direction of MPX International i.e., MPX International and CHS go up and down completely randomly.

Pair Corralation between MPX International and CHS

Assuming the 90 days horizon MPX International Corp is expected to generate 19.46 times more return on investment than CHS. However, MPX International is 19.46 times more volatile than CHS Inc CP. It trades about 0.06 of its potential returns per unit of risk. CHS Inc CP is currently generating about -0.07 per unit of risk. If you would invest  0.01  in MPX International Corp on September 3, 2025 and sell it today you would earn a total of  0.00  from holding MPX International Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

MPX International Corp  vs.  CHS Inc CP

MPX International Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MPX International Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MPX International reported solid returns over the last few months and may actually be approaching a breakup point.

CHS Inc CP

Risk-Adjusted Performance

Weakest

Over the last 90 days CHS Inc CP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, CHS is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with MPX International and CHS

The main advantage of trading using opposite MPX International and CHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPX International 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 MPX International Corp and CHS Inc CP 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.