Correlation Between Whole Earth and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both Whole Earth and Stryve Foods 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 Whole Earth and Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whole Earth Brands and Stryve Foods, you can compare the effects of market volatilities on Whole Earth and Stryve Foods 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 Whole Earth with a short position of Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whole Earth and Stryve Foods.
Diversification Opportunities for Whole Earth and Stryve Foods
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whole and Stryve is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Whole Earth Brands and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and Whole Earth 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 Whole Earth Brands are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Whole Earth i.e., Whole Earth and Stryve Foods go up and down completely randomly.
Pair Corralation between Whole Earth and Stryve Foods
Given the investment horizon of 90 days Whole Earth Brands is expected to generate 1.05 times more return on investment than Stryve Foods. However, Whole Earth is 1.05 times more volatile than Stryve Foods. It trades about -0.02 of its potential returns per unit of risk. Stryve Foods is currently generating about -0.06 per unit of risk. If you would invest 439.00 in Whole Earth Brands on August 27, 2024 and sell it today you would lose (439.00) from holding Whole Earth Brands or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.48% |
| Values | Daily Returns |
Whole Earth Brands vs. Stryve Foods
Performance |
| Timeline |
| Whole Earth Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stryve Foods |
Whole Earth and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whole Earth and Stryve Foods
The main advantage of trading using opposite Whole Earth and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whole Earth position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| Whole Earth vs. Seneca Foods Corp | Whole Earth vs. Lifeway Foods | Whole Earth vs. John B Sanfilippo | Whole Earth vs. Real Good Food |
| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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