Correlation Between Laird Superfood and Flowers Foods
Can any of the company-specific risk be diversified away by investing in both Laird Superfood and Flowers 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 Laird Superfood and Flowers Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laird Superfood and Flowers Foods, you can compare the effects of market volatilities on Laird Superfood and Flowers 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 Laird Superfood with a short position of Flowers Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laird Superfood and Flowers Foods.
Diversification Opportunities for Laird Superfood and Flowers Foods
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laird and Flowers is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Laird Superfood and Flowers Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowers Foods and Laird Superfood 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 Laird Superfood are associated (or correlated) with Flowers Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowers Foods has no effect on the direction of Laird Superfood i.e., Laird Superfood and Flowers Foods go up and down completely randomly.
Pair Corralation between Laird Superfood and Flowers Foods
Considering the 90-day investment horizon Laird Superfood is expected to generate 6.39 times more return on investment than Flowers Foods. However, Laird Superfood is 6.39 times more volatile than Flowers Foods. It trades about 0.24 of its potential returns per unit of risk. Flowers Foods is currently generating about 0.0 per unit of risk. If you would invest 373.00 in Laird Superfood on September 2, 2024 and sell it today you would earn a total of 533.00 from holding Laird Superfood or generate 142.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laird Superfood vs. Flowers Foods
Performance |
| Timeline |
| Laird Superfood |
| Flowers Foods |
Laird Superfood and Flowers Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laird Superfood and Flowers Foods
The main advantage of trading using opposite Laird Superfood and Flowers Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laird Superfood position performs unexpectedly, Flowers 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 Flowers Foods will offset losses from the drop in Flowers Foods' long position.| Laird Superfood vs. Campbell Soup | Laird Superfood vs. ConAgra Foods | Laird Superfood vs. Hormel Foods | Laird Superfood vs. Kellanova |
| Flowers Foods vs. ConAgra Foods | Flowers Foods vs. McCormick Company Incorporated | Flowers Foods vs. Campbell Soup | Flowers Foods vs. Kellanova |
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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