Correlation Between CONAGRA FOODS and Apple
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and Apple 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 CONAGRA FOODS and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and Apple Inc, you can compare the effects of market volatilities on CONAGRA FOODS and Apple 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 CONAGRA FOODS with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and Apple.
Diversification Opportunities for CONAGRA FOODS and Apple
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CONAGRA and Apple is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CONAGRA 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 CONAGRA FOODS are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and Apple go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and Apple
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, CONAGRA FOODS is 1.04 times less risky than Apple. The stock trades about -0.03 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 14,879 in Apple Inc on August 26, 2024 and sell it today you would earn a total of 7,136 from holding Apple Inc or generate 47.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. Apple Inc
Performance |
| Timeline |
| CONAGRA FOODS |
| Apple Inc |
CONAGRA FOODS and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and Apple
The main advantage of trading using opposite CONAGRA FOODS and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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