Correlation Between JM Smucker and Steakholder Foods
Can any of the company-specific risk be diversified away by investing in both JM Smucker and Steakholder 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 JM Smucker and Steakholder Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JM Smucker and Steakholder Foods, you can compare the effects of market volatilities on JM Smucker and Steakholder 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 JM Smucker with a short position of Steakholder Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Smucker and Steakholder Foods.
Diversification Opportunities for JM Smucker and Steakholder Foods
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SJM and Steakholder is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding JM Smucker and Steakholder Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steakholder Foods and JM Smucker 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 JM Smucker are associated (or correlated) with Steakholder Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steakholder Foods has no effect on the direction of JM Smucker i.e., JM Smucker and Steakholder Foods go up and down completely randomly.
Pair Corralation between JM Smucker and Steakholder Foods
Considering the 90-day investment horizon JM Smucker is expected to generate 0.24 times more return on investment than Steakholder Foods. However, JM Smucker is 4.18 times less risky than Steakholder Foods. It trades about -0.03 of its potential returns per unit of risk. Steakholder Foods is currently generating about -0.02 per unit of risk. If you would invest 14,771 in JM Smucker on September 11, 2024 and sell it today you would lose (3,271) from holding JM Smucker or give up 22.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
JM Smucker vs. Steakholder Foods
Performance |
| Timeline |
| JM Smucker |
| Steakholder Foods |
JM Smucker and Steakholder Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JM Smucker and Steakholder Foods
The main advantage of trading using opposite JM Smucker and Steakholder Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Smucker position performs unexpectedly, Steakholder 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 Steakholder Foods will offset losses from the drop in Steakholder Foods' long position.| JM Smucker vs. General Mills | JM Smucker vs. Campbell Soup | JM Smucker vs. ConAgra Foods | JM Smucker vs. Hormel Foods |
| Steakholder Foods vs. Farmmi Inc | Steakholder Foods vs. Herbalife Nutrition | Steakholder Foods vs. Beyond Meat | Steakholder Foods vs. Bit Origin |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |