Correlation Between General Mills and Fraser
Can any of the company-specific risk be diversified away by investing in both General Mills and Fraser 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 Fraser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and Fraser and Neave, you can compare the effects of market volatilities on General Mills and Fraser 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 Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Fraser.
Diversification Opportunities for General Mills and Fraser
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Fraser is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave 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 Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of General Mills i.e., General Mills and Fraser go up and down completely randomly.
Pair Corralation between General Mills and Fraser
If you would invest 112.00 in Fraser and Neave on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Fraser and Neave or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Mills vs. Fraser and Neave
Performance |
| Timeline |
| General Mills |
| Fraser and Neave |
General Mills and Fraser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and Fraser
The main advantage of trading using opposite General Mills and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser's long position.| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods |
| Fraser vs. Kellanova | Fraser vs. Lancaster Colony | Fraser vs. The A2 Milk | Fraser vs. Altavoz Entertainment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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