Correlation Between Tyson Foods and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Tyson Foods and INFICON Holding 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 INFICON Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tyson Foods and INFICON Holding AG, you can compare the effects of market volatilities on Tyson Foods and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tyson Foods and INFICON Holding.
Diversification Opportunities for Tyson Foods and INFICON Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tyson and INFICON is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tyson Foods and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Tyson Foods i.e., Tyson Foods and INFICON Holding go up and down completely randomly.
Pair Corralation between Tyson Foods and INFICON Holding
Considering the 90-day investment horizon Tyson Foods is expected to generate 0.14 times more return on investment than INFICON Holding. However, Tyson Foods is 7.3 times less risky than INFICON Holding. It trades about -0.03 of its potential returns per unit of risk. INFICON Holding AG is currently generating about -0.21 per unit of risk. If you would invest 6,217 in Tyson Foods on September 13, 2024 and sell it today you would lose (46.00) from holding Tyson Foods or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tyson Foods vs. INFICON Holding AG
Performance |
| Timeline |
| Tyson Foods |
| INFICON Holding AG |
Tyson Foods and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tyson Foods and INFICON Holding
The main advantage of trading using opposite Tyson Foods and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tyson Foods position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding's long position.| Tyson Foods vs. General Mills | Tyson Foods vs. Campbell Soup | Tyson Foods vs. ConAgra Foods | Tyson Foods vs. Hormel Foods |
| INFICON Holding vs. Copa Holdings SA | INFICON Holding vs. United Airlines Holdings | INFICON Holding vs. Delta Air Lines | INFICON Holding vs. SkyWest |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |