Correlation Between SpartanNash and Calavo Growers
Can any of the company-specific risk be diversified away by investing in both SpartanNash and Calavo Growers 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 Calavo Growers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpartanNash Co and Calavo Growers, you can compare the effects of market volatilities on SpartanNash and Calavo Growers 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 Calavo Growers. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpartanNash and Calavo Growers.
Diversification Opportunities for SpartanNash and Calavo Growers
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between SpartanNash and Calavo is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SpartanNash Co and Calavo Growers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calavo Growers 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 Calavo Growers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calavo Growers has no effect on the direction of SpartanNash i.e., SpartanNash and Calavo Growers go up and down completely randomly.
Pair Corralation between SpartanNash and Calavo Growers
Given the investment horizon of 90 days SpartanNash Co is expected to under-perform the Calavo Growers. In addition to that, SpartanNash is 1.99 times more volatile than Calavo Growers. It trades about -0.14 of its total potential returns per unit of risk. Calavo Growers is currently generating about 0.12 per unit of volatility. If you would invest 2,692 in Calavo Growers on August 27, 2024 and sell it today you would earn a total of 101.00 from holding Calavo Growers or generate 3.75% 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. Calavo Growers
Performance |
| Timeline |
| SpartanNash |
| Calavo Growers |
SpartanNash and Calavo Growers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpartanNash and Calavo Growers
The main advantage of trading using opposite SpartanNash and Calavo Growers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpartanNash position performs unexpectedly, Calavo Growers 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 Calavo Growers will offset losses from the drop in Calavo Growers' long position.| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
| Calavo Growers vs. SpartanNash Co | Calavo Growers vs. The Andersons | Calavo Growers vs. The Chefs Warehouse | Calavo Growers vs. Hf Foods Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |