Correlation Between Integrated Biopharma and Flowers Foods
Can any of the company-specific risk be diversified away by investing in both Integrated Biopharma and Flowers 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 Integrated Biopharma and Flowers Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Biopharma and Flowers Foods, you can compare the effects of market volatilities on Integrated Biopharma and Flowers 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 Integrated Biopharma with a short position of Flowers Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Biopharma and Flowers Foods.
Diversification Opportunities for Integrated Biopharma and Flowers Foods
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integrated and Flowers is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Biopharma and Flowers Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowers Foods and Integrated Biopharma 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 Integrated Biopharma are associated (or correlated) with Flowers Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowers Foods has no effect on the direction of Integrated Biopharma i.e., Integrated Biopharma and Flowers Foods go up and down completely randomly.
Pair Corralation between Integrated Biopharma and Flowers Foods
Given the investment horizon of 90 days Integrated Biopharma is expected to generate about the same return on investment as Flowers Foods. However, Integrated Biopharma is 3.55 times more volatile than Flowers Foods. It trades about -0.01 of its potential returns per unit of risk. Flowers Foods is currently producing about -0.04 per unit of risk. If you would invest 2,573 in Flowers Foods on November 2, 2024 and sell it today you would lose (625.00) from holding Flowers Foods or give up 24.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.47% |
| Values | Daily Returns |
Integrated Biopharma vs. Flowers Foods
Performance |
| Timeline |
| Integrated Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Flowers Foods |
Integrated Biopharma and Flowers Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Biopharma and Flowers Foods
The main advantage of trading using opposite Integrated Biopharma and Flowers Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Biopharma position performs unexpectedly, Flowers 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 Flowers Foods will offset losses from the drop in Flowers Foods' long position.| Integrated Biopharma vs. Premier Foods Plc | Integrated Biopharma vs. Torque Lifestyle Brands | Integrated Biopharma vs. Naturally Splendid Enterprises | Integrated Biopharma vs. Aryzta AG PK |
| Flowers Foods vs. ConAgra Foods | Flowers Foods vs. McCormick Company Incorporated | Flowers Foods vs. Campbell Soup | Flowers Foods vs. Kellanova |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |