Correlation Between Scotts Miracle and Save Foods
Can any of the company-specific risk be diversified away by investing in both Scotts Miracle and Save 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 Scotts Miracle and Save Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scotts Miracle Gro and Save Foods, you can compare the effects of market volatilities on Scotts Miracle and Save 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 Scotts Miracle with a short position of Save Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scotts Miracle and Save Foods.
Diversification Opportunities for Scotts Miracle and Save Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scotts and Save is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Scotts Miracle Gro and Save Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Save Foods and Scotts Miracle 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 Scotts Miracle Gro are associated (or correlated) with Save Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Save Foods has no effect on the direction of Scotts Miracle i.e., Scotts Miracle and Save Foods go up and down completely randomly.
Pair Corralation between Scotts Miracle and Save Foods
If you would invest 59.00 in Save Foods on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Save Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Scotts Miracle Gro vs. Save Foods
Performance |
| Timeline |
| Scotts Miracle Gro |
| Save Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scotts Miracle and Save Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scotts Miracle and Save Foods
The main advantage of trading using opposite Scotts Miracle and Save Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scotts Miracle position performs unexpectedly, Save 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 Save Foods will offset losses from the drop in Save Foods' long position.| Scotts Miracle vs. Corteva | Scotts Miracle vs. CF Industries Holdings | Scotts Miracle vs. American Vanguard | Scotts Miracle vs. Intrepid Potash |
| Save Foods vs. Origin Agritech | Save Foods vs. Benson Hill, Common | Save Foods vs. Corteva | Save Foods vs. Scotts Miracle Gro |
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 Stocks Directory module to find actively traded stocks across global markets.
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