Correlation Between Pacific Ventures and Chefs Warehouse
Can any of the company-specific risk be diversified away by investing in both Pacific Ventures and Chefs Warehouse 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 Pacific Ventures and Chefs Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Ventures Group and The Chefs Warehouse, you can compare the effects of market volatilities on Pacific Ventures and Chefs Warehouse 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 Pacific Ventures with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Ventures and Chefs Warehouse.
Diversification Opportunities for Pacific Ventures and Chefs Warehouse
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pacific and Chefs is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Ventures Group and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and Pacific Ventures 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 Pacific Ventures Group are associated (or correlated) with Chefs Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chefs Warehouse has no effect on the direction of Pacific Ventures i.e., Pacific Ventures and Chefs Warehouse go up and down completely randomly.
Pair Corralation between Pacific Ventures and Chefs Warehouse
If you would invest 3,926 in The Chefs Warehouse on August 31, 2024 and sell it today you would earn a total of 545.00 from holding The Chefs Warehouse or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Pacific Ventures Group vs. The Chefs Warehouse
Performance |
| Timeline |
| Pacific Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chefs Warehouse |
Pacific Ventures and Chefs Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Ventures and Chefs Warehouse
The main advantage of trading using opposite Pacific Ventures and Chefs Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Ventures position performs unexpectedly, Chefs Warehouse 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 Chefs Warehouse will offset losses from the drop in Chefs Warehouse's long position.| Pacific Ventures vs. AMCON Distributing | Pacific Ventures vs. Colabor Group | Pacific Ventures vs. Bunzl plc | Pacific Ventures vs. Wanderport Corp |
| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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