Correlation Between AEON STORES and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both AEON STORES 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 AEON STORES and TreeHouse Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and TreeHouse Foods, you can compare the effects of market volatilities on AEON STORES 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 AEON STORES with a short position of TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and TreeHouse Foods.
Diversification Opportunities for AEON STORES and TreeHouse Foods
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and TreeHouse is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods and AEON STORES 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 AEON STORES 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 AEON STORES i.e., AEON STORES and TreeHouse Foods go up and down completely randomly.
Pair Corralation between AEON STORES and TreeHouse Foods
If you would invest 3,300 in TreeHouse Foods on November 9, 2024 and sell it today you would earn a total of 0.00 from holding TreeHouse Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. TreeHouse Foods
Performance |
| Timeline |
| AEON STORES |
| TreeHouse Foods |
AEON STORES and TreeHouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and TreeHouse Foods
The main advantage of trading using opposite AEON STORES and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES 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.| AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc | AEON STORES vs. Apple Inc |
| TreeHouse Foods vs. Auto Trader Group | TreeHouse Foods vs. FIRST SHIP LEASE | TreeHouse Foods vs. United Rentals | TreeHouse Foods vs. Global Ship Lease |
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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