Correlation Between RETAIL FOOD and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and Corning Incorporated 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 RETAIL FOOD and Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Corning Incorporated, you can compare the effects of market volatilities on RETAIL FOOD and Corning Incorporated 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 RETAIL FOOD with a short position of Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Corning Incorporated.
Diversification Opportunities for RETAIL FOOD and Corning Incorporated
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RETAIL and Corning is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated and RETAIL 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 RETAIL FOOD GROUP are associated (or correlated) with Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and Corning Incorporated go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Corning Incorporated
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Corning Incorporated. In addition to that, RETAIL FOOD is 1.88 times more volatile than Corning Incorporated. It trades about -0.01 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.05 per unit of volatility. If you would invest 3,089 in Corning Incorporated on October 7, 2024 and sell it today you would earn a total of 1,445 from holding Corning Incorporated or generate 46.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Corning Incorporated
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Corning Incorporated |
RETAIL FOOD and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Corning Incorporated
The main advantage of trading using opposite RETAIL FOOD and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| RETAIL FOOD vs. Easy Software AG | RETAIL FOOD vs. Amkor Technology | RETAIL FOOD vs. Sunny Optical Technology | RETAIL FOOD vs. THORNEY TECHS LTD |
| Corning Incorporated vs. FIREWEED METALS P | Corning Incorporated vs. AGNC INVESTMENT | Corning Incorporated vs. ECHO INVESTMENT ZY | Corning Incorporated vs. MidCap Financial Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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