Correlation Between BranchOut Food and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both BranchOut Food and ConAgra 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 BranchOut Food and ConAgra Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BranchOut Food Common and ConAgra Foods, you can compare the effects of market volatilities on BranchOut Food and ConAgra 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 BranchOut Food with a short position of ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BranchOut Food and ConAgra Foods.
Diversification Opportunities for BranchOut Food and ConAgra Foods
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BranchOut and ConAgra is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BranchOut Food Common and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods and BranchOut Food 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 BranchOut Food Common are associated (or correlated) with ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of BranchOut Food i.e., BranchOut Food and ConAgra Foods go up and down completely randomly.
Pair Corralation between BranchOut Food and ConAgra Foods
Considering the 90-day investment horizon BranchOut Food Common is expected to generate 3.48 times more return on investment than ConAgra Foods. However, BranchOut Food is 3.48 times more volatile than ConAgra Foods. It trades about 0.04 of its potential returns per unit of risk. ConAgra Foods is currently generating about -0.21 per unit of risk. If you would invest 175.00 in BranchOut Food Common on August 24, 2024 and sell it today you would earn a total of 4.00 from holding BranchOut Food Common or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BranchOut Food Common vs. ConAgra Foods
Performance |
| Timeline |
| BranchOut Food Common |
| ConAgra Foods |
BranchOut Food and ConAgra Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BranchOut Food and ConAgra Foods
The main advantage of trading using opposite BranchOut Food and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BranchOut Food position performs unexpectedly, ConAgra 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.| BranchOut Food vs. Citi Trends | BranchOut Food vs. PVH Corp | BranchOut Food vs. Vera Bradley | BranchOut Food vs. Lululemon Athletica |
| ConAgra Foods vs. Bellring Brands LLC | ConAgra Foods vs. Treehouse Foods | ConAgra Foods vs. Ingredion Incorporated | ConAgra Foods vs. JM Smucker |
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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