Correlation Between CONAGRA FOODS and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and XTANT MEDICAL 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 XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on CONAGRA FOODS and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and XTANT MEDICAL.
Diversification Opportunities for CONAGRA FOODS and XTANT MEDICAL
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CONAGRA and XTANT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and XTANT MEDICAL
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, CONAGRA FOODS is 3.95 times less risky than XTANT MEDICAL. The stock trades about -0.03 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 63.00 in XTANT MEDICAL HLDGS on October 28, 2024 and sell it today you would lose (14.00) from holding XTANT MEDICAL HLDGS or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| CONAGRA FOODS |
| XTANT MEDICAL HLDGS |
CONAGRA FOODS and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and XTANT MEDICAL
The main advantage of trading using opposite CONAGRA FOODS and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| CONAGRA FOODS vs. ETFS Coffee ETC | CONAGRA FOODS vs. CeoTronics AG | CONAGRA FOODS vs. Corporate Travel Management | CONAGRA FOODS vs. Coor Service Management |
| XTANT MEDICAL vs. WillScot Mobile Mini | XTANT MEDICAL vs. Tower One Wireless | XTANT MEDICAL vs. Jupiter Fund Management | XTANT MEDICAL vs. Highlight Communications AG |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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