Correlation Between Campbell Soup and Integrated Biopharma
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and Integrated Biopharma 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 Integrated Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Integrated Biopharma, you can compare the effects of market volatilities on Campbell Soup and Integrated Biopharma 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 Integrated Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Integrated Biopharma.
Diversification Opportunities for Campbell Soup and Integrated Biopharma
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Campbell and Integrated is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and Integrated Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Biopharma 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 Integrated Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Biopharma has no effect on the direction of Campbell Soup i.e., Campbell Soup and Integrated Biopharma go up and down completely randomly.
Pair Corralation between Campbell Soup and Integrated Biopharma
Considering the 90-day investment horizon Campbell Soup is expected to generate 0.3 times more return on investment than Integrated Biopharma. However, Campbell Soup is 3.33 times less risky than Integrated Biopharma. It trades about -0.03 of its potential returns per unit of risk. Integrated Biopharma is currently generating about -0.01 per unit of risk. If you would invest 4,933 in Campbell Soup on November 2, 2024 and sell it today you would lose (1,054) from holding Campbell Soup or give up 21.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.52% |
| Values | Daily Returns |
Campbell Soup vs. Integrated Biopharma
Performance |
| Timeline |
| Campbell Soup |
| Integrated Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Campbell Soup and Integrated Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Integrated Biopharma
The main advantage of trading using opposite Campbell Soup and Integrated Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, Integrated Biopharma 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 Integrated Biopharma will offset losses from the drop in Integrated Biopharma's long position.| Campbell Soup vs. General Mills | Campbell Soup vs. Hormel Foods | Campbell Soup vs. Kellanova | Campbell Soup vs. Lamb Weston Holdings |
| Integrated Biopharma vs. Premier Foods Plc | Integrated Biopharma vs. Torque Lifestyle Brands | Integrated Biopharma vs. Naturally Splendid Enterprises | Integrated Biopharma vs. Aryzta AG PK |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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