Correlation Between General Mills and Very Good
Can any of the company-specific risk be diversified away by investing in both General Mills and Very Good 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 Very Good into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and The Very Good, you can compare the effects of market volatilities on General Mills and Very Good 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 Very Good. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Very Good.
Diversification Opportunities for General Mills and Very Good
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between General and Very is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and The Very Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Very Good 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 Very Good. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Very Good has no effect on the direction of General Mills i.e., General Mills and Very Good go up and down completely randomly.
Pair Corralation between General Mills and Very Good
If you would invest 1.60 in The Very Good on August 28, 2024 and sell it today you would earn a total of 0.00 from holding The Very Good or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
General Mills vs. The Very Good
Performance |
| Timeline |
| General Mills |
| Very Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
General Mills and Very Good Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and Very Good
The main advantage of trading using opposite General Mills and Very Good positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Very Good 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 Very Good will offset losses from the drop in Very Good's long position.| General Mills vs. Bellring Brands LLC | General Mills vs. Ingredion Incorporated | General Mills vs. Nomad Foods | General Mills vs. Simply Good Foods |
| Very Good vs. Zhihu Inc ADR | Very Good vs. Old Republic International | Very Good vs. National CineMedia | Very Good vs. Sun Life Financial |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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