Correlation Between SpartanNash and Chefs Warehouse
Can any of the company-specific risk be diversified away by investing in both SpartanNash and Chefs Warehouse 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 SpartanNash and Chefs Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpartanNash Co and The Chefs Warehouse, you can compare the effects of market volatilities on SpartanNash and Chefs Warehouse 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 SpartanNash with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpartanNash and Chefs Warehouse.
Diversification Opportunities for SpartanNash and Chefs Warehouse
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SpartanNash and Chefs is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SpartanNash Co and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and SpartanNash 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 SpartanNash Co are associated (or correlated) with Chefs Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chefs Warehouse has no effect on the direction of SpartanNash i.e., SpartanNash and Chefs Warehouse go up and down completely randomly.
Pair Corralation between SpartanNash and Chefs Warehouse
Given the investment horizon of 90 days SpartanNash Co is expected to under-perform the Chefs Warehouse. In addition to that, SpartanNash is 1.51 times more volatile than The Chefs Warehouse. It trades about -0.14 of its total potential returns per unit of risk. The Chefs Warehouse is currently generating about 0.22 per unit of volatility. If you would invest 4,087 in The Chefs Warehouse on August 27, 2024 and sell it today you would earn a total of 408.00 from holding The Chefs Warehouse or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpartanNash Co vs. The Chefs Warehouse
Performance |
| Timeline |
| SpartanNash |
| Chefs Warehouse |
SpartanNash and Chefs Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpartanNash and Chefs Warehouse
The main advantage of trading using opposite SpartanNash and Chefs Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpartanNash position performs unexpectedly, Chefs Warehouse 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 Chefs Warehouse will offset losses from the drop in Chefs Warehouse's long position.| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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