Correlation Between General Mills and Nichirei
Can any of the company-specific risk be diversified away by investing in both General Mills and Nichirei 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 Nichirei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and Nichirei, you can compare the effects of market volatilities on General Mills and Nichirei 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 Nichirei. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Nichirei.
Diversification Opportunities for General Mills and Nichirei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Nichirei is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and Nichirei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nichirei 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 Nichirei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nichirei has no effect on the direction of General Mills i.e., General Mills and Nichirei go up and down completely randomly.
Pair Corralation between General Mills and Nichirei
If you would invest 1,210 in Nichirei on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Nichirei or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
General Mills vs. Nichirei
Performance |
| Timeline |
| General Mills |
| Nichirei |
General Mills and Nichirei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and Nichirei
The main advantage of trading using opposite General Mills and Nichirei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Nichirei 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 Nichirei will offset losses from the drop in Nichirei's long position.| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods |
| Nichirei vs. Kellanova | Nichirei vs. General Mills | Nichirei vs. Campbell Soup | Nichirei vs. Kraft Heinz Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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