Correlation Between General Mills and LEROY SEAFOOD
Can any of the company-specific risk be diversified away by investing in both General Mills and LEROY SEAFOOD 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 LEROY SEAFOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and LEROY SEAFOOD GRUNSPADR, you can compare the effects of market volatilities on General Mills and LEROY SEAFOOD 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 LEROY SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and LEROY SEAFOOD.
Diversification Opportunities for General Mills and LEROY SEAFOOD
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and LEROY is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and LEROY SEAFOOD GRUNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEROY SEAFOOD GRUNSPADR 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 LEROY SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEROY SEAFOOD GRUNSPADR has no effect on the direction of General Mills i.e., General Mills and LEROY SEAFOOD go up and down completely randomly.
Pair Corralation between General Mills and LEROY SEAFOOD
Assuming the 90 days horizon General Mills is expected to generate 27.7 times less return on investment than LEROY SEAFOOD. But when comparing it to its historical volatility, General Mills is 1.86 times less risky than LEROY SEAFOOD. It trades about 0.0 of its potential returns per unit of risk. LEROY SEAFOOD GRUNSPADR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 634.00 in LEROY SEAFOOD GRUNSPADR on October 22, 2024 and sell it today you would earn a total of 221.00 from holding LEROY SEAFOOD GRUNSPADR or generate 34.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.56% |
| Values | Daily Returns |
General Mills vs. LEROY SEAFOOD GRUNSPADR
Performance |
| Timeline |
| General Mills |
| LEROY SEAFOOD GRUNSPADR |
General Mills and LEROY SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and LEROY SEAFOOD
The main advantage of trading using opposite General Mills and LEROY SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, LEROY SEAFOOD 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 LEROY SEAFOOD will offset losses from the drop in LEROY SEAFOOD's long position.| General Mills vs. Northern Data AG | General Mills vs. TRI CHEMICAL LABORATINC | General Mills vs. KINGBOARD CHEMICAL | General Mills vs. Silicon Motion Technology |
| LEROY SEAFOOD vs. MARKET VECTR RETAIL | LEROY SEAFOOD vs. Cairo Communication SpA | LEROY SEAFOOD vs. Canon Marketing Japan | LEROY SEAFOOD vs. H2O Retailing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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