Correlation Between CONAGRA FOODS and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and STANLEY ELECTRIC 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 STANLEY ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and STANLEY ELECTRIC CO, you can compare the effects of market volatilities on CONAGRA FOODS and STANLEY ELECTRIC 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 STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and STANLEY ELECTRIC.
Diversification Opportunities for CONAGRA FOODS and STANLEY ELECTRIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONAGRA and STANLEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC 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 STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and STANLEY ELECTRIC
If you would invest 2,460 in STANLEY ELECTRIC CO on August 30, 2024 and sell it today you would earn a total of 0.00 from holding STANLEY ELECTRIC CO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| CONAGRA FOODS |
| STANLEY ELECTRIC |
CONAGRA FOODS and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and STANLEY ELECTRIC
The main advantage of trading using opposite CONAGRA FOODS and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC's long position.| CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Apple Inc | CONAGRA FOODS vs. Superior Plus Corp | CONAGRA FOODS vs. SIVERS SEMICONDUCTORS AB |
| STANLEY ELECTRIC vs. Summit Hotel Properties | STANLEY ELECTRIC vs. HYATT HOTELS A | STANLEY ELECTRIC vs. INTERCONT HOTELS | STANLEY ELECTRIC vs. NH HOTEL GROUP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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