Correlation Between LABOCANNA and General Mills
Can any of the company-specific risk be diversified away by investing in both LABOCANNA and General Mills 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 LABOCANNA and General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LABOCANNA SA ZY 10 and General Mills, you can compare the effects of market volatilities on LABOCANNA and General Mills 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 LABOCANNA with a short position of General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of LABOCANNA and General Mills.
Diversification Opportunities for LABOCANNA and General Mills
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LABOCANNA and General is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding LABOCANNA SA ZY 10 and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills and LABOCANNA 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 LABOCANNA SA ZY 10 are associated (or correlated) with General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of LABOCANNA i.e., LABOCANNA and General Mills go up and down completely randomly.
Pair Corralation between LABOCANNA and General Mills
Assuming the 90 days horizon LABOCANNA is expected to generate 3.06 times less return on investment than General Mills. In addition to that, LABOCANNA is 3.48 times more volatile than General Mills. It trades about 0.0 of its total potential returns per unit of risk. General Mills is currently generating about 0.03 per unit of volatility. If you would invest 7,409 in General Mills on September 1, 2024 and sell it today you would earn a total of 1,449 from holding General Mills or generate 19.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
LABOCANNA SA ZY 10 vs. General Mills
Performance |
| Timeline |
| LABOCANNA SA ZY |
| General Mills |
LABOCANNA and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LABOCANNA and General Mills
The main advantage of trading using opposite LABOCANNA and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LABOCANNA position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| LABOCANNA vs. QINGCI GAMES INC | LABOCANNA vs. Penn National Gaming | LABOCANNA vs. International Game Technology | LABOCANNA vs. Altair Engineering |
| General Mills vs. INTER CARS SA | General Mills vs. Geely Automobile Holdings | General Mills vs. GEELY AUTOMOBILE | General Mills vs. MCEWEN MINING INC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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