Correlation Between Stryve Foods and Scepter Holdings
Can any of the company-specific risk be diversified away by investing in both Stryve Foods and Scepter Holdings 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 Stryve Foods and Scepter Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and Scepter Holdings, you can compare the effects of market volatilities on Stryve Foods and Scepter Holdings 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 Stryve Foods with a short position of Scepter Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Scepter Holdings.
Diversification Opportunities for Stryve Foods and Scepter Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stryve and Scepter is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods and Scepter Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scepter Holdings and Stryve 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 Stryve Foods are associated (or correlated) with Scepter Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scepter Holdings has no effect on the direction of Stryve Foods i.e., Stryve Foods and Scepter Holdings go up and down completely randomly.
Pair Corralation between Stryve Foods and Scepter Holdings
Given the investment horizon of 90 days Stryve Foods is expected to under-perform the Scepter Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Stryve Foods is 5.38 times less risky than Scepter Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Scepter Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 0.17 in Scepter Holdings on August 29, 2024 and sell it today you would lose (0.09) from holding Scepter Holdings or give up 52.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stryve Foods vs. Scepter Holdings
Performance |
| Timeline |
| Stryve Foods |
| Scepter Holdings |
Stryve Foods and Scepter Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryve Foods and Scepter Holdings
The main advantage of trading using opposite Stryve Foods and Scepter Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods position performs unexpectedly, Scepter Holdings 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 Scepter Holdings will offset losses from the drop in Scepter Holdings' long position.| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
| Scepter Holdings vs. Qed Connect | Scepter Holdings vs. Nates Food Co | Scepter Holdings vs. Sharing Services Global | Scepter Holdings vs. Stryve 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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