Correlation Between CONAGRA FOODS and Corporate Office
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and Corporate Office 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 Corporate Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and Corporate Office Properties, you can compare the effects of market volatilities on CONAGRA FOODS and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and Corporate Office.
Diversification Opportunities for CONAGRA FOODS and Corporate Office
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONAGRA and Corporate is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and Corporate Office go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and Corporate Office
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the Corporate Office. In addition to that, CONAGRA FOODS is 1.17 times more volatile than Corporate Office Properties. It trades about 0.0 of its total potential returns per unit of risk. Corporate Office Properties is currently generating about 0.23 per unit of volatility. If you would invest 2,187 in Corporate Office Properties on August 31, 2024 and sell it today you would earn a total of 893.00 from holding Corporate Office Properties or generate 40.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
CONAGRA FOODS vs. Corporate Office Properties
Performance |
| Timeline |
| CONAGRA FOODS |
| Corporate Office Pro |
CONAGRA FOODS and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and Corporate Office
The main advantage of trading using opposite CONAGRA FOODS and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office's long position.| CONAGRA FOODS vs. SIVERS SEMICONDUCTORS AB | CONAGRA FOODS vs. Darden Restaurants | CONAGRA FOODS vs. Reliance Steel Aluminum | CONAGRA FOODS vs. Q2M Managementberatung AG |
| Corporate Office vs. Superior Plus Corp | Corporate Office vs. NMI Holdings | Corporate Office vs. Origin Agritech | Corporate Office vs. SIVERS SEMICONDUCTORS AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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