Correlation Between Tyson Foods and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Tyson Foods and Gecina SA 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 Tyson Foods and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tyson Foods and Gecina SA, you can compare the effects of market volatilities on Tyson Foods and Gecina SA 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 Tyson Foods with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tyson Foods and Gecina SA.
Diversification Opportunities for Tyson Foods and Gecina SA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tyson and Gecina is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tyson Foods and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Tyson 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 Tyson Foods are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Tyson Foods i.e., Tyson Foods and Gecina SA go up and down completely randomly.
Pair Corralation between Tyson Foods and Gecina SA
Assuming the 90 days trading horizon Tyson Foods is expected to under-perform the Gecina SA. In addition to that, Tyson Foods is 1.31 times more volatile than Gecina SA. It trades about -0.22 of its total potential returns per unit of risk. Gecina SA is currently generating about -0.1 per unit of volatility. If you would invest 9,445 in Gecina SA on October 26, 2024 and sell it today you would lose (385.00) from holding Gecina SA or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tyson Foods vs. Gecina SA
Performance |
| Timeline |
| Tyson Foods |
| Gecina SA |
Tyson Foods and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tyson Foods and Gecina SA
The main advantage of trading using opposite Tyson Foods and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tyson Foods position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Tyson Foods vs. PARKEN Sport Entertainment | Tyson Foods vs. WIMFARM SA EO | Tyson Foods vs. Sterling Construction | Tyson Foods vs. BII Railway Transportation |
| Gecina SA vs. TYSON FOODS A | Gecina SA vs. Tyson Foods | Gecina SA vs. CN MODERN DAIRY | Gecina SA vs. Nomad 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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