Correlation Between Campbell Soup and John B
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and John B 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 John B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and John B Sanfilippo, you can compare the effects of market volatilities on Campbell Soup and John B 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 John B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and John B.
Diversification Opportunities for Campbell Soup and John B
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Campbell and John is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and John B Sanfilippo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John B Sanfilippo 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 John B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John B Sanfilippo has no effect on the direction of Campbell Soup i.e., Campbell Soup and John B go up and down completely randomly.
Pair Corralation between Campbell Soup and John B
Considering the 90-day investment horizon Campbell Soup is expected to generate 0.47 times more return on investment than John B. However, Campbell Soup is 2.15 times less risky than John B. It trades about -0.04 of its potential returns per unit of risk. John B Sanfilippo is currently generating about -0.12 per unit of risk. If you would invest 4,668 in Campbell Soup on August 31, 2024 and sell it today you would lose (61.00) from holding Campbell Soup or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campbell Soup vs. John B Sanfilippo
Performance |
| Timeline |
| Campbell Soup |
| John B Sanfilippo |
Campbell Soup and John B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and John B
The main advantage of trading using opposite Campbell Soup and John B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, John B 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 John B will offset losses from the drop in John B's long position.| Campbell Soup vs. General Mills | Campbell Soup vs. Hormel Foods | Campbell Soup vs. Kellanova | Campbell Soup vs. Lamb Weston Holdings |
| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. Seneca Foods Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |