Correlation Between Chefs Warehouse and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Chefs Warehouse and Leafly 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 Chefs Warehouse and Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Chefs Warehouse and Leafly Holdings, you can compare the effects of market volatilities on Chefs Warehouse and Leafly 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 Chefs Warehouse with a short position of Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chefs Warehouse and Leafly Holdings.
Diversification Opportunities for Chefs Warehouse and Leafly Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chefs and Leafly is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Chefs Warehouse and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and Chefs Warehouse 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 The Chefs Warehouse are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Chefs Warehouse i.e., Chefs Warehouse and Leafly Holdings go up and down completely randomly.
Pair Corralation between Chefs Warehouse and Leafly Holdings
Given the investment horizon of 90 days The Chefs Warehouse is expected to generate 0.14 times more return on investment than Leafly Holdings. However, The Chefs Warehouse is 7.04 times less risky than Leafly Holdings. It trades about 0.34 of its potential returns per unit of risk. Leafly Holdings is currently generating about -0.18 per unit of risk. If you would invest 3,994 in The Chefs Warehouse on November 1, 2024 and sell it today you would earn a total of 1,459 from holding The Chefs Warehouse or generate 36.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.33% |
| Values | Daily Returns |
The Chefs Warehouse vs. Leafly Holdings
Performance |
| Timeline |
| Chefs Warehouse |
| Leafly Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chefs Warehouse and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chefs Warehouse and Leafly Holdings
The main advantage of trading using opposite Chefs Warehouse and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chefs Warehouse position performs unexpectedly, Leafly 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |