Correlation Between Scepter Holdings and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both Scepter Holdings and Stryve 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 Scepter Holdings and Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scepter Holdings and Stryve Foods, you can compare the effects of market volatilities on Scepter Holdings and Stryve 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 Scepter Holdings with a short position of Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scepter Holdings and Stryve Foods.
Diversification Opportunities for Scepter Holdings and Stryve Foods
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scepter and Stryve is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Scepter Holdings and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and Scepter Holdings 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 Scepter Holdings are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Scepter Holdings i.e., Scepter Holdings and Stryve Foods go up and down completely randomly.
Pair Corralation between Scepter Holdings and Stryve Foods
Given the investment horizon of 90 days Scepter Holdings is expected to generate 1.26 times more return on investment than Stryve Foods. However, Scepter Holdings is 1.26 times more volatile than Stryve Foods. It trades about 0.33 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.01 per unit of risk. If you would invest 0.07 in Scepter Holdings on November 27, 2024 and sell it today you would earn a total of 0.10 from holding Scepter Holdings or generate 142.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Scepter Holdings vs. Stryve Foods
Performance |
| Timeline |
| Scepter Holdings |
| Stryve Foods |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Scepter Holdings and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scepter Holdings and Stryve Foods
The main advantage of trading using opposite Scepter Holdings and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scepter Holdings position performs unexpectedly, Stryve 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| Scepter Holdings vs. Qed Connect | Scepter Holdings vs. Nates Food Co | Scepter Holdings vs. Sharing Services Global | Scepter Holdings vs. Seneca Foods Corp |
| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |