Correlation Between Urban Barns and Lancaster Colony
Can any of the company-specific risk be diversified away by investing in both Urban Barns and Lancaster Colony 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 Urban Barns and Lancaster Colony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Barns Foods and Lancaster Colony, you can compare the effects of market volatilities on Urban Barns and Lancaster Colony 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 Urban Barns with a short position of Lancaster Colony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Barns and Lancaster Colony.
Diversification Opportunities for Urban Barns and Lancaster Colony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Urban and Lancaster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Urban Barns Foods and Lancaster Colony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancaster Colony and Urban Barns 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 Urban Barns Foods are associated (or correlated) with Lancaster Colony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancaster Colony has no effect on the direction of Urban Barns i.e., Urban Barns and Lancaster Colony go up and down completely randomly.
Pair Corralation between Urban Barns and Lancaster Colony
If you would invest 16,908 in Lancaster Colony on August 29, 2024 and sell it today you would earn a total of 1,650 from holding Lancaster Colony or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Urban Barns Foods vs. Lancaster Colony
Performance |
| Timeline |
| Urban Barns Foods |
| Lancaster Colony |
Urban Barns and Lancaster Colony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Barns and Lancaster Colony
The main advantage of trading using opposite Urban Barns and Lancaster Colony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Barns position performs unexpectedly, Lancaster Colony 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 Lancaster Colony will offset losses from the drop in Lancaster Colony's long position.| Urban Barns vs. Village Super Market | Urban Barns vs. Grocery Outlet Holding | Urban Barns vs. WiMi Hologram Cloud | Urban Barns vs. BBB Foods |
| Lancaster Colony vs. Treehouse Foods | Lancaster Colony vs. John B Sanfilippo | Lancaster Colony vs. Seneca Foods Corp | Lancaster Colony vs. Seneca Foods Corp |
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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