Correlation Between Ingles Markets and Performance Food
Can any of the company-specific risk be diversified away by investing in both Ingles Markets and Performance Food 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 Ingles Markets and Performance Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingles Markets Incorporated and Performance Food Group, you can compare the effects of market volatilities on Ingles Markets and Performance Food 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 Ingles Markets with a short position of Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingles Markets and Performance Food.
Diversification Opportunities for Ingles Markets and Performance Food
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingles and Performance is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ingles Markets Incorporated and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food and Ingles Markets 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 Ingles Markets Incorporated are associated (or correlated) with Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Ingles Markets i.e., Ingles Markets and Performance Food go up and down completely randomly.
Pair Corralation between Ingles Markets and Performance Food
Assuming the 90 days horizon Ingles Markets is expected to generate 4.13 times less return on investment than Performance Food. In addition to that, Ingles Markets is 1.51 times more volatile than Performance Food Group. It trades about 0.03 of its total potential returns per unit of risk. Performance Food Group is currently generating about 0.2 per unit of volatility. If you would invest 7,472 in Performance Food Group on August 28, 2024 and sell it today you would earn a total of 1,404 from holding Performance Food Group or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingles Markets Incorporated vs. Performance Food Group
Performance |
| Timeline |
| Ingles Markets |
| Performance Food |
Ingles Markets and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingles Markets and Performance Food
The main advantage of trading using opposite Ingles Markets and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingles Markets position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Ingles Markets vs. Innovative Food Hldg | Ingles Markets vs. Calavo Growers | Ingles Markets vs. The Chefs Warehouse | Ingles Markets vs. AMCON Distributing |
| Performance Food vs. Sysco | Performance Food vs. The Chefs Warehouse | Performance Food vs. United Natural Foods | Performance Food vs. Calavo Growers |
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.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |