Correlation Between Central Garden and MamaMancinis Holdings
Can any of the company-specific risk be diversified away by investing in both Central Garden and MamaMancinis Holdings 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 Central Garden and MamaMancinis Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Garden Pet and MamaMancinis Holdings, you can compare the effects of market volatilities on Central Garden and MamaMancinis Holdings 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 Central Garden with a short position of MamaMancinis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Garden and MamaMancinis Holdings.
Diversification Opportunities for Central Garden and MamaMancinis Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Central and MamaMancinis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Central Garden Pet and MamaMancinis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MamaMancinis Holdings and Central Garden 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 Central Garden Pet are associated (or correlated) with MamaMancinis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MamaMancinis Holdings has no effect on the direction of Central Garden i.e., Central Garden and MamaMancinis Holdings go up and down completely randomly.
Pair Corralation between Central Garden and MamaMancinis Holdings
If you would invest 2,951 in Central Garden Pet on August 27, 2024 and sell it today you would earn a total of 367.00 from holding Central Garden Pet or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Central Garden Pet vs. MamaMancinis Holdings
Performance |
| Timeline |
| Central Garden Pet |
| MamaMancinis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Central Garden and MamaMancinis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Garden and MamaMancinis Holdings
The main advantage of trading using opposite Central Garden and MamaMancinis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Garden position performs unexpectedly, MamaMancinis Holdings 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 MamaMancinis Holdings will offset losses from the drop in MamaMancinis Holdings' long position.| Central Garden vs. Seneca Foods Corp | Central Garden vs. Seneca Foods Corp | Central Garden vs. Natures Sunshine Products | Central Garden vs. J J Snack |
| MamaMancinis Holdings vs. Seneca Foods Corp | MamaMancinis Holdings vs. Central Garden Pet | MamaMancinis Holdings vs. Central Garden Pet | MamaMancinis Holdings vs. Natures Sunshine Products |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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