Correlation Between Campbell Soup and Artisan Consumer
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and Artisan Consumer 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 Campbell Soup and Artisan Consumer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Artisan Consumer Goods, you can compare the effects of market volatilities on Campbell Soup and Artisan Consumer 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 Campbell Soup with a short position of Artisan Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Artisan Consumer.
Diversification Opportunities for Campbell Soup and Artisan Consumer
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Campbell and Artisan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods and Campbell Soup 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 Campbell Soup are associated (or correlated) with Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of Campbell Soup i.e., Campbell Soup and Artisan Consumer go up and down completely randomly.
Pair Corralation between Campbell Soup and Artisan Consumer
Considering the 90-day investment horizon Campbell Soup is expected to generate 0.22 times more return on investment than Artisan Consumer. However, Campbell Soup is 4.51 times less risky than Artisan Consumer. It trades about -0.01 of its potential returns per unit of risk. Artisan Consumer Goods is currently generating about -0.22 per unit of risk. If you would invest 4,638 in Campbell Soup on September 4, 2024 and sell it today you would lose (15.00) from holding Campbell Soup or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Campbell Soup vs. Artisan Consumer Goods
Performance |
| Timeline |
| Campbell Soup |
| Artisan Consumer Goods |
Campbell Soup and Artisan Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Artisan Consumer
The main advantage of trading using opposite Campbell Soup and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, Artisan Consumer 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 Artisan Consumer will offset losses from the drop in Artisan Consumer's long position.| Campbell Soup vs. General Mills | Campbell Soup vs. Hormel Foods | Campbell Soup vs. Kellanova | Campbell Soup vs. Lamb Weston Holdings |
| Artisan Consumer vs. Advantage Solutions | Artisan Consumer vs. Atlas Corp | Artisan Consumer vs. PureCycle Technologies | Artisan Consumer vs. WM Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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