Correlation Between Flowers Foods and TDH Holdings
Can any of the company-specific risk be diversified away by investing in both Flowers Foods and TDH 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 Flowers Foods and TDH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowers Foods and TDH Holdings, you can compare the effects of market volatilities on Flowers Foods and TDH 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 Flowers Foods with a short position of TDH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and TDH Holdings.
Diversification Opportunities for Flowers Foods and TDH Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flowers and TDH is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods and TDH Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TDH Holdings and Flowers Foods 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 Flowers Foods are associated (or correlated) with TDH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TDH Holdings has no effect on the direction of Flowers Foods i.e., Flowers Foods and TDH Holdings go up and down completely randomly.
Pair Corralation between Flowers Foods and TDH Holdings
Considering the 90-day investment horizon Flowers Foods is expected to generate 0.53 times more return on investment than TDH Holdings. However, Flowers Foods is 1.88 times less risky than TDH Holdings. It trades about 0.13 of its potential returns per unit of risk. TDH Holdings is currently generating about -0.18 per unit of risk. If you would invest 2,208 in Flowers Foods on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Flowers Foods or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flowers Foods vs. TDH Holdings
Performance |
| Timeline |
| Flowers Foods |
| TDH Holdings |
Flowers Foods and TDH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowers Foods and TDH Holdings
The main advantage of trading using opposite Flowers Foods and TDH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods position performs unexpectedly, TDH 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 TDH Holdings will offset losses from the drop in TDH Holdings' long position.| Flowers Foods vs. ConAgra Foods | Flowers Foods vs. McCormick Company Incorporated | Flowers Foods vs. Campbell Soup | Flowers Foods vs. Kellanova |
| TDH Holdings vs. Bit Origin | TDH Holdings vs. Laird Superfood | TDH Holdings vs. Planet Green Holdings | TDH Holdings vs. Stryve Foods |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |