Correlation Between General Mills and Qed Connect
Can any of the company-specific risk be diversified away by investing in both General Mills and Qed Connect 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 Qed Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and Qed Connect, you can compare the effects of market volatilities on General Mills and Qed Connect 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 Qed Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Qed Connect.
Diversification Opportunities for General Mills and Qed Connect
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between General and Qed is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and Qed Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qed Connect 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 Qed Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qed Connect has no effect on the direction of General Mills i.e., General Mills and Qed Connect go up and down completely randomly.
Pair Corralation between General Mills and Qed Connect
Considering the 90-day investment horizon General Mills is expected to generate 0.1 times more return on investment than Qed Connect. However, General Mills is 10.31 times less risky than Qed Connect. It trades about -0.13 of its potential returns per unit of risk. Qed Connect is currently generating about -0.28 per unit of risk. If you would invest 6,289 in General Mills on November 3, 2024 and sell it today you would lose (275.00) from holding General Mills or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Mills vs. Qed Connect
Performance |
| Timeline |
| General Mills |
| Qed Connect |
General Mills and Qed Connect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and Qed Connect
The main advantage of trading using opposite General Mills and Qed Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Qed Connect 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 Qed Connect will offset losses from the drop in Qed Connect's long position.| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods |
| Qed Connect vs. Scepter Holdings | Qed Connect vs. Nates Food Co | Qed Connect vs. Sharing Services Global | Qed Connect 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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