Correlation Between Borealis Foods and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Borealis Foods and Campbell Soup 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 Borealis Foods and Campbell Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borealis Foods and Campbell Soup, you can compare the effects of market volatilities on Borealis Foods and Campbell Soup 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 Borealis Foods with a short position of Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borealis Foods and Campbell Soup.
Diversification Opportunities for Borealis Foods and Campbell Soup
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Borealis and Campbell is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Borealis Foods and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup and Borealis Foods 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 Borealis Foods are associated (or correlated) with Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Borealis Foods i.e., Borealis Foods and Campbell Soup go up and down completely randomly.
Pair Corralation between Borealis Foods and Campbell Soup
Assuming the 90 days horizon Borealis Foods is expected to generate 8.7 times more return on investment than Campbell Soup. However, Borealis Foods is 8.7 times more volatile than Campbell Soup. It trades about 0.05 of its potential returns per unit of risk. Campbell Soup is currently generating about -0.02 per unit of risk. If you would invest 7.11 in Borealis Foods on August 31, 2024 and sell it today you would lose (0.11) from holding Borealis Foods or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.24% |
| Values | Daily Returns |
Borealis Foods vs. Campbell Soup
Performance |
| Timeline |
| Borealis Foods |
| Campbell Soup |
Borealis Foods and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borealis Foods and Campbell Soup
The main advantage of trading using opposite Borealis Foods and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borealis Foods position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Borealis Foods vs. Grocery Outlet Holding | Borealis Foods vs. Simon Property Group | Borealis Foods vs. Amgen Inc | Borealis Foods vs. Cedar Realty Trust |
| Campbell Soup vs. General Mills | Campbell Soup vs. Hormel Foods | Campbell Soup vs. Kellanova | Campbell Soup vs. Lamb Weston Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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