Correlation Between Integrated Biopharma and Lancaster Colony
Can any of the company-specific risk be diversified away by investing in both Integrated Biopharma and Lancaster Colony 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 Lancaster Colony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Biopharma and Lancaster Colony, you can compare the effects of market volatilities on Integrated Biopharma and Lancaster Colony 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 Lancaster Colony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Biopharma and Lancaster Colony.
Diversification Opportunities for Integrated Biopharma and Lancaster Colony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integrated and Lancaster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Biopharma and Lancaster Colony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancaster Colony 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 Lancaster Colony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancaster Colony has no effect on the direction of Integrated Biopharma i.e., Integrated Biopharma and Lancaster Colony go up and down completely randomly.
Pair Corralation between Integrated Biopharma and Lancaster Colony
If you would invest 20,460 in Lancaster Colony on January 22, 2025 and sell it today you would lose (1,441) from holding Lancaster Colony or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Integrated Biopharma vs. Lancaster Colony
Performance |
| Timeline |
| Integrated Biopharma |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lancaster Colony |
Integrated Biopharma and Lancaster Colony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Biopharma and Lancaster Colony
The main advantage of trading using opposite Integrated Biopharma and Lancaster Colony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Biopharma position performs unexpectedly, Lancaster Colony 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 Lancaster Colony will offset losses from the drop in Lancaster Colony's 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 |
| Lancaster Colony vs. Treehouse Foods | Lancaster Colony vs. John B Sanfilippo | Lancaster Colony vs. Seneca Foods Corp | Lancaster Colony vs. J J Snack |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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