Correlation Between Ingredion Incorporated and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both Ingredion Incorporated and Stryve 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 Ingredion Incorporated and Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingredion Incorporated and Stryve Foods, you can compare the effects of market volatilities on Ingredion Incorporated and Stryve 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 Ingredion Incorporated with a short position of Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingredion Incorporated and Stryve Foods.
Diversification Opportunities for Ingredion Incorporated and Stryve Foods
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ingredion and Stryve is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ingredion Incorporated and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and Ingredion Incorporated 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 Ingredion Incorporated are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Ingredion Incorporated i.e., Ingredion Incorporated and Stryve Foods go up and down completely randomly.
Pair Corralation between Ingredion Incorporated and Stryve Foods
Given the investment horizon of 90 days Ingredion Incorporated is expected to generate 0.27 times more return on investment than Stryve Foods. However, Ingredion Incorporated is 3.74 times less risky than Stryve Foods. It trades about 0.12 of its potential returns per unit of risk. Stryve Foods is currently generating about -0.06 per unit of risk. If you would invest 9,855 in Ingredion Incorporated on August 25, 2024 and sell it today you would earn a total of 4,792 from holding Ingredion Incorporated or generate 48.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingredion Incorporated vs. Stryve Foods
Performance |
| Timeline |
| Ingredion Incorporated |
| Stryve Foods |
Ingredion Incorporated and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingredion Incorporated and Stryve Foods
The main advantage of trading using opposite Ingredion Incorporated and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingredion Incorporated position performs unexpectedly, Stryve 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| Ingredion Incorporated vs. Lancaster Colony | Ingredion Incorporated vs. Treehouse Foods | Ingredion Incorporated vs. John B Sanfilippo | Ingredion Incorporated vs. Seneca Foods Corp |
| Stryve Foods vs. Bellring Brands LLC | Stryve Foods vs. Ingredion Incorporated | Stryve Foods vs. John B Sanfilippo | Stryve Foods vs. Nomad Foods |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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