Correlation Between SSMTF and Farmer Bros
Can any of the company-specific risk be diversified away by investing in both SSMTF and Farmer Bros 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 SSMTF and Farmer Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSMTF and Farmer Bros Co, you can compare the effects of market volatilities on SSMTF and Farmer Bros 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 SSMTF with a short position of Farmer Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSMTF and Farmer Bros.
Diversification Opportunities for SSMTF and Farmer Bros
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSMTF and Farmer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSMTF and Farmer Bros Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmer Bros and SSMTF 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 SSMTF are associated (or correlated) with Farmer Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmer Bros has no effect on the direction of SSMTF i.e., SSMTF and Farmer Bros go up and down completely randomly.
Pair Corralation between SSMTF and Farmer Bros
If you would invest 0.15 in SSMTF on October 24, 2024 and sell it today you would earn a total of 0.00 from holding SSMTF or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
SSMTF vs. Farmer Bros Co
Performance |
| Timeline |
| SSMTF |
| Farmer Bros |
SSMTF and Farmer Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSMTF and Farmer Bros
The main advantage of trading using opposite SSMTF and Farmer Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSMTF position performs unexpectedly, Farmer Bros 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 Farmer Bros will offset losses from the drop in Farmer Bros' long position.| SSMTF vs. Ameriprise Financial | SSMTF vs. Black Spade Acquisition | SSMTF vs. Sun Life Financial | SSMTF vs. The Joint Corp |
| Farmer Bros vs. Bridgford Foods | Farmer Bros vs. Seneca Foods Corp | Farmer Bros vs. Lifeway Foods | Farmer Bros vs. SSMTF |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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