Correlation Between Premier Foods and MusclePharm
Can any of the company-specific risk be diversified away by investing in both Premier Foods and MusclePharm 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 Premier Foods and MusclePharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Foods Plc and MusclePharm, you can compare the effects of market volatilities on Premier Foods and MusclePharm 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 Premier Foods with a short position of MusclePharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Foods and MusclePharm.
Diversification Opportunities for Premier Foods and MusclePharm
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Premier and MusclePharm is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Premier Foods Plc and MusclePharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MusclePharm and Premier Foods 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 Premier Foods Plc are associated (or correlated) with MusclePharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MusclePharm has no effect on the direction of Premier Foods i.e., Premier Foods and MusclePharm go up and down completely randomly.
Pair Corralation between Premier Foods and MusclePharm
If you would invest (100.00) in MusclePharm on August 28, 2024 and sell it today you would earn a total of 100.00 from holding MusclePharm or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Premier Foods Plc vs. MusclePharm
Performance |
| Timeline |
| Premier Foods Plc |
| MusclePharm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Premier Foods and MusclePharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Foods and MusclePharm
The main advantage of trading using opposite Premier Foods and MusclePharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Foods position performs unexpectedly, MusclePharm 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 MusclePharm will offset losses from the drop in MusclePharm's long position.| Premier Foods vs. Artisan Consumer Goods | Premier Foods vs. The A2 Milk | Premier Foods vs. General Mills |
| MusclePharm vs. Jacobs Solutions | MusclePharm vs. Fidus Investment Corp | MusclePharm vs. Black Hills | MusclePharm vs. Everus Construction Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |