Correlation Between Calavo Growers and SpartanNash
Can any of the company-specific risk be diversified away by investing in both Calavo Growers and SpartanNash 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 Calavo Growers and SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calavo Growers and SpartanNash Co, you can compare the effects of market volatilities on Calavo Growers and SpartanNash 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 Calavo Growers with a short position of SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calavo Growers and SpartanNash.
Diversification Opportunities for Calavo Growers and SpartanNash
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calavo and SpartanNash is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calavo Growers and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash and Calavo Growers 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 Calavo Growers are associated (or correlated) with SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Calavo Growers i.e., Calavo Growers and SpartanNash go up and down completely randomly.
Pair Corralation between Calavo Growers and SpartanNash
Given the investment horizon of 90 days Calavo Growers is expected to generate 1.56 times more return on investment than SpartanNash. However, Calavo Growers is 1.56 times more volatile than SpartanNash Co. It trades about 0.0 of its potential returns per unit of risk. SpartanNash Co is currently generating about -0.04 per unit of risk. If you would invest 3,045 in Calavo Growers on October 20, 2024 and sell it today you would lose (576.00) from holding Calavo Growers or give up 18.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calavo Growers vs. SpartanNash Co
Performance |
| Timeline |
| Calavo Growers |
| SpartanNash |
Calavo Growers and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calavo Growers and SpartanNash
The main advantage of trading using opposite Calavo Growers and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calavo Growers position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| Calavo Growers vs. SpartanNash Co | Calavo Growers vs. The Andersons | Calavo Growers vs. The Chefs Warehouse | Calavo Growers vs. Hf Foods Group |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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