Correlation Between Sysco and Chefs Warehouse
Can any of the company-specific risk be diversified away by investing in both Sysco 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 Sysco and Chefs Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sysco and The Chefs Warehouse, you can compare the effects of market volatilities on Sysco 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 Sysco with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sysco and Chefs Warehouse.
Diversification Opportunities for Sysco and Chefs Warehouse
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sysco and Chefs is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sysco and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and Sysco 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 Sysco 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 Sysco i.e., Sysco and Chefs Warehouse go up and down completely randomly.
Pair Corralation between Sysco and Chefs Warehouse
Considering the 90-day investment horizon Sysco is expected to under-perform the Chefs Warehouse. But the stock apears to be less risky and, when comparing its historical volatility, Sysco is 1.16 times less risky than Chefs Warehouse. The stock trades about -0.02 of its potential returns per unit of risk. The The Chefs Warehouse is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,994 in The Chefs Warehouse on November 1, 2024 and sell it today you would earn a total of 1,459 from holding The Chefs Warehouse or generate 36.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sysco vs. The Chefs Warehouse
Performance |
| Timeline |
| Sysco |
| Chefs Warehouse |
Sysco and Chefs Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sysco and Chefs Warehouse
The main advantage of trading using opposite Sysco and Chefs Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sysco 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.| Sysco vs. Performance Food Group | Sysco vs. The Chefs Warehouse | Sysco vs. United Natural Foods | Sysco vs. Calavo Growers |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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