Correlation Between General Mills and Amincor
Can any of the company-specific risk be diversified away by investing in both General Mills and Amincor 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 General Mills and Amincor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and Amincor, you can compare the effects of market volatilities on General Mills and Amincor 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 General Mills with a short position of Amincor. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Amincor.
Diversification Opportunities for General Mills and Amincor
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Amincor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and Amincor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amincor and General Mills 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 General Mills are associated (or correlated) with Amincor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amincor has no effect on the direction of General Mills i.e., General Mills and Amincor go up and down completely randomly.
Pair Corralation between General Mills and Amincor
If you would invest 14.00 in Amincor on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Amincor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Mills vs. Amincor
Performance |
| Timeline |
| General Mills |
| Amincor |
General Mills and Amincor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and Amincor
The main advantage of trading using opposite General Mills and Amincor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Amincor 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 Amincor will offset losses from the drop in Amincor's long position.| General Mills vs. Campbell Soup | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods | General Mills vs. Kellanova |
| Amincor vs. BAB Inc | Amincor vs. FitLife Brands, Common | Amincor vs. The A2 Milk | Amincor vs. Artisan Consumer Goods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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