Correlation Between MYFAIR GOLD and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD and TreeHouse Foods 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 MYFAIR GOLD and TreeHouse Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and TreeHouse Foods, you can compare the effects of market volatilities on MYFAIR GOLD and TreeHouse Foods 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 MYFAIR GOLD with a short position of TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and TreeHouse Foods.
Diversification Opportunities for MYFAIR GOLD and TreeHouse Foods
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MYFAIR and TreeHouse is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods and MYFAIR GOLD 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 MYFAIR GOLD P are associated (or correlated) with TreeHouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TreeHouse Foods has no effect on the direction of MYFAIR GOLD i.e., MYFAIR GOLD and TreeHouse Foods go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and TreeHouse Foods
Assuming the 90 days horizon MYFAIR GOLD P is expected to under-perform the TreeHouse Foods. In addition to that, MYFAIR GOLD is 1.1 times more volatile than TreeHouse Foods. It trades about -0.14 of its total potential returns per unit of risk. TreeHouse Foods is currently generating about -0.1 per unit of volatility. If you would invest 3,500 in TreeHouse Foods on August 25, 2024 and sell it today you would lose (340.00) from holding TreeHouse Foods or give up 9.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. TreeHouse Foods
Performance |
| Timeline |
| MYFAIR GOLD P |
| TreeHouse Foods |
MYFAIR GOLD and TreeHouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and TreeHouse Foods
The main advantage of trading using opposite MYFAIR GOLD and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD position performs unexpectedly, TreeHouse Foods 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 TreeHouse Foods will offset losses from the drop in TreeHouse Foods' long position.| MYFAIR GOLD vs. Franco Nevada | MYFAIR GOLD vs. Agnico Eagle Mines | MYFAIR GOLD vs. Superior Plus Corp | MYFAIR GOLD vs. NMI Holdings |
| TreeHouse Foods vs. Superior Plus Corp | TreeHouse Foods vs. NMI Holdings | TreeHouse Foods vs. Origin Agritech | TreeHouse Foods vs. SIVERS SEMICONDUCTORS AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |