Correlation Between Innovative Food and SpartanNash
Can any of the company-specific risk be diversified away by investing in both Innovative Food and SpartanNash 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 Innovative Food and SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative Food Hldg and SpartanNash Co, you can compare the effects of market volatilities on Innovative Food and SpartanNash 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 Innovative Food with a short position of SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Food and SpartanNash.
Diversification Opportunities for Innovative Food and SpartanNash
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Innovative and SpartanNash is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Food Hldg and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash and Innovative Food 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 Innovative Food Hldg are associated (or correlated) with SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Innovative Food i.e., Innovative Food and SpartanNash go up and down completely randomly.
Pair Corralation between Innovative Food and SpartanNash
Given the investment horizon of 90 days Innovative Food Hldg is expected to under-perform the SpartanNash. In addition to that, Innovative Food is 2.1 times more volatile than SpartanNash Co. It trades about -0.27 of its total potential returns per unit of risk. SpartanNash Co is currently generating about 0.15 per unit of volatility. If you would invest 1,932 in SpartanNash Co on January 4, 2025 and sell it today you would earn a total of 86.00 from holding SpartanNash Co or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Food Hldg vs. SpartanNash Co
Performance |
| Timeline |
| Innovative Food Hldg |
| SpartanNash |
Innovative Food and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Food and SpartanNash
The main advantage of trading using opposite Innovative Food and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Food position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| Innovative Food vs. Organto Foods | Innovative Food vs. Colabor Group | Innovative Food vs. Bunzl plc | Innovative Food vs. Hf Foods Group |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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