Correlation Between Lancaster Colony and Thorne HealthTech
Can any of the company-specific risk be diversified away by investing in both Lancaster Colony and Thorne HealthTech 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 Thorne HealthTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lancaster Colony and Thorne HealthTech, you can compare the effects of market volatilities on Lancaster Colony and Thorne HealthTech 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 Thorne HealthTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lancaster Colony and Thorne HealthTech.
Diversification Opportunities for Lancaster Colony and Thorne HealthTech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lancaster and Thorne is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lancaster Colony and Thorne HealthTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thorne HealthTech 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 Thorne HealthTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thorne HealthTech has no effect on the direction of Lancaster Colony i.e., Lancaster Colony and Thorne HealthTech go up and down completely randomly.
Pair Corralation between Lancaster Colony and Thorne HealthTech
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 Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Lancaster Colony vs. Thorne HealthTech
Performance |
| Timeline |
| Lancaster Colony |
| Thorne HealthTech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lancaster Colony and Thorne HealthTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lancaster Colony and Thorne HealthTech
The main advantage of trading using opposite Lancaster Colony and Thorne HealthTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lancaster Colony position performs unexpectedly, Thorne HealthTech 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 Thorne HealthTech will offset losses from the drop in Thorne HealthTech'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 |
| Thorne HealthTech vs. Seneca Foods Corp | Thorne HealthTech vs. Central Garden Pet | Thorne HealthTech vs. Central Garden Pet | Thorne HealthTech vs. Natures Sunshine Products |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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