Correlation Between Andersons and Chefs Warehouse
Can any of the company-specific risk be diversified away by investing in both Andersons and Chefs Warehouse 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 Andersons and Chefs Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Andersons and The Chefs Warehouse, you can compare the effects of market volatilities on Andersons and Chefs Warehouse 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 Andersons with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andersons and Chefs Warehouse.
Diversification Opportunities for Andersons and Chefs Warehouse
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Andersons and Chefs is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Andersons and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and Andersons 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 The Andersons are associated (or correlated) with Chefs Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chefs Warehouse has no effect on the direction of Andersons i.e., Andersons and Chefs Warehouse go up and down completely randomly.
Pair Corralation between Andersons and Chefs Warehouse
Given the investment horizon of 90 days Andersons is expected to generate 2.76 times less return on investment than Chefs Warehouse. In addition to that, Andersons is 1.54 times more volatile than The Chefs Warehouse. It trades about 0.09 of its total potential returns per unit of risk. The Chefs Warehouse is currently generating about 0.38 per unit of volatility. If you would invest 4,932 in The Chefs Warehouse on November 1, 2024 and sell it today you would earn a total of 521.00 from holding The Chefs Warehouse or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Andersons vs. The Chefs Warehouse
Performance |
| Timeline |
| Andersons |
| Chefs Warehouse |
Andersons and Chefs Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andersons and Chefs Warehouse
The main advantage of trading using opposite Andersons and Chefs Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andersons position performs unexpectedly, Chefs Warehouse 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 Chefs Warehouse will offset losses from the drop in Chefs Warehouse's long position.| Andersons vs. Calavo Growers | Andersons vs. SpartanNash Co | Andersons vs. The Chefs Warehouse | Andersons vs. Hf Foods Group |
| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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