Correlation Between General Mills and TreeHouse Foods
Can any of the company-specific risk be diversified away by investing in both General Mills and TreeHouse Foods 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 TreeHouse Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and TreeHouse Foods, you can compare the effects of market volatilities on General Mills and TreeHouse Foods 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 TreeHouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and TreeHouse Foods.
Diversification Opportunities for General Mills and TreeHouse Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and TreeHouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and TreeHouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TreeHouse Foods 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 TreeHouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TreeHouse Foods has no effect on the direction of General Mills i.e., General Mills and TreeHouse Foods go up and down completely randomly.
Pair Corralation between General Mills and TreeHouse Foods
If you would invest (100.00) in General Mills on November 5, 2024 and sell it today you would earn a total of 100.00 from holding General Mills or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Mills vs. TreeHouse Foods
Performance |
| Timeline |
| General Mills |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TreeHouse Foods |
General Mills and TreeHouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and TreeHouse Foods
The main advantage of trading using opposite General Mills and TreeHouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, TreeHouse Foods 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 TreeHouse Foods will offset losses from the drop in TreeHouse Foods' long position.| General Mills vs. Tokyu Construction Co | General Mills vs. Penta Ocean Construction Co | General Mills vs. PICKN PAY STORES | General Mills vs. RETAIL FOOD GROUP |
| TreeHouse Foods vs. ANTA SPORTS PRODUCT | TreeHouse Foods vs. Constellation Software | TreeHouse Foods vs. RYU Apparel | TreeHouse Foods vs. PSI Software AG |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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