Correlation Between CONAGRA FOODS and TYSON FOODS
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and TYSON 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 CONAGRA FOODS and TYSON FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and TYSON FOODS A , you can compare the effects of market volatilities on CONAGRA FOODS and TYSON 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 CONAGRA FOODS with a short position of TYSON FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and TYSON FOODS.
Diversification Opportunities for CONAGRA FOODS and TYSON FOODS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CONAGRA and TYSON is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and TYSON FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSON FOODS A 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 TYSON FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSON FOODS A has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and TYSON FOODS go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and TYSON FOODS
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the TYSON FOODS. But the stock apears to be less risky and, when comparing its historical volatility, CONAGRA FOODS is 1.15 times less risky than TYSON FOODS. The stock trades about -0.01 of its potential returns per unit of risk. The TYSON FOODS A is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,522 in TYSON FOODS A on August 28, 2024 and sell it today you would earn a total of 1,571 from holding TYSON FOODS A or generate 34.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. TYSON FOODS A
Performance |
| Timeline |
| CONAGRA FOODS |
| TYSON FOODS A |
CONAGRA FOODS and TYSON FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and TYSON FOODS
The main advantage of trading using opposite CONAGRA FOODS and TYSON FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, TYSON 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 TYSON FOODS will offset losses from the drop in TYSON FOODS's long position.| CONAGRA FOODS vs. Harmony Gold Mining | CONAGRA FOODS vs. WILLIS LEASE FIN | CONAGRA FOODS vs. SHIN ETSU CHEMICAL | CONAGRA FOODS vs. WESTLAKE CHEMICAL |
| TYSON FOODS vs. Apple Inc | TYSON FOODS vs. Apple Inc | TYSON FOODS vs. Microsoft | TYSON FOODS vs. Microsoft |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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