Correlation Between Stryve Foods and General Mills
Can any of the company-specific risk be diversified away by investing in both Stryve Foods and General Mills 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 General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and General Mills, you can compare the effects of market volatilities on Stryve Foods and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and General Mills.
Diversification Opportunities for Stryve Foods and General Mills
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stryve and General is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Stryve Foods i.e., Stryve Foods and General Mills go up and down completely randomly.
Pair Corralation between Stryve Foods and General Mills
Given the investment horizon of 90 days Stryve Foods is expected to generate 3.97 times more return on investment than General Mills. However, Stryve Foods is 3.97 times more volatile than General Mills. It trades about 0.02 of its potential returns per unit of risk. General Mills is currently generating about -0.18 per unit of risk. If you would invest 94.00 in Stryve Foods on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Stryve Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryve Foods vs. General Mills
Performance |
| Timeline |
| Stryve Foods |
| General Mills |
Stryve Foods and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryve Foods and General Mills
The main advantage of trading using opposite Stryve Foods and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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