Correlation Between Smart For and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both Smart For and ConAgra 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 Smart For and ConAgra Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart for Life, and ConAgra Foods, you can compare the effects of market volatilities on Smart For and ConAgra 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 Smart For with a short position of ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart For and ConAgra Foods.
Diversification Opportunities for Smart For and ConAgra Foods
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Smart and ConAgra is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Smart for Life, and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods and Smart For 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 Smart for Life, are associated (or correlated) with ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of Smart For i.e., Smart For and ConAgra Foods go up and down completely randomly.
Pair Corralation between Smart For and ConAgra Foods
Given the investment horizon of 90 days Smart for Life, is expected to under-perform the ConAgra Foods. In addition to that, Smart For is 10.35 times more volatile than ConAgra Foods. It trades about -0.1 of its total potential returns per unit of risk. ConAgra Foods is currently generating about -0.03 per unit of volatility. If you would invest 3,501 in ConAgra Foods on August 28, 2024 and sell it today you would lose (756.00) from holding ConAgra Foods or give up 21.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.72% |
| Values | Daily Returns |
Smart for Life, vs. ConAgra Foods
Performance |
| Timeline |
| Smart for Life, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ConAgra Foods |
Smart For and ConAgra Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart For and ConAgra Foods
The main advantage of trading using opposite Smart For and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart For position performs unexpectedly, ConAgra 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.| Smart For vs. Bit Origin | Smart For vs. Better Choice | Smart For vs. Farmmi Inc | Smart For vs. Laird Superfood |
| ConAgra Foods vs. Bellring Brands LLC | ConAgra Foods vs. Ingredion Incorporated | ConAgra Foods vs. Nomad Foods | ConAgra Foods vs. Simply Good Foods |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |