Correlation Between Lancaster Colony and Integrated Biopharma
Can any of the company-specific risk be diversified away by investing in both Lancaster Colony and Integrated Biopharma 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 Lancaster Colony and Integrated Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lancaster Colony and Integrated Biopharma, you can compare the effects of market volatilities on Lancaster Colony and Integrated Biopharma 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 Lancaster Colony with a short position of Integrated Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lancaster Colony and Integrated Biopharma.
Diversification Opportunities for Lancaster Colony and Integrated Biopharma
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lancaster and Integrated is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lancaster Colony and Integrated Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Biopharma and Lancaster Colony 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 Lancaster Colony are associated (or correlated) with Integrated Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Biopharma has no effect on the direction of Lancaster Colony i.e., Lancaster Colony and Integrated Biopharma go up and down completely randomly.
Pair Corralation between Lancaster Colony and Integrated Biopharma
If you would invest 18,111 in Lancaster Colony on August 29, 2024 and sell it today you would earn a total of 494.00 from holding Lancaster Colony or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Lancaster Colony vs. Integrated Biopharma
Performance |
| Timeline |
| Lancaster Colony |
| Integrated Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lancaster Colony and Integrated Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lancaster Colony and Integrated Biopharma
The main advantage of trading using opposite Lancaster Colony and Integrated Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lancaster Colony position performs unexpectedly, Integrated Biopharma 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 Integrated Biopharma will offset losses from the drop in Integrated Biopharma's long position.| Lancaster Colony vs. Treehouse Foods | Lancaster Colony vs. John B Sanfilippo | Lancaster Colony vs. Seneca Foods Corp | Lancaster Colony vs. Seneca Foods Corp |
| Integrated Biopharma vs. Premier Foods Plc | Integrated Biopharma vs. Torque Lifestyle Brands | Integrated Biopharma vs. Naturally Splendid Enterprises | Integrated Biopharma vs. Aryzta AG PK |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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