Correlation Between Utz Brands and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Utz Brands and Campbell Soup 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 Utz Brands and Campbell Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utz Brands and Campbell Soup, you can compare the effects of market volatilities on Utz Brands and Campbell Soup 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 Utz Brands with a short position of Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utz Brands and Campbell Soup.
Diversification Opportunities for Utz Brands and Campbell Soup
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Utz and Campbell is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup and Utz Brands 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 Utz Brands are associated (or correlated) with Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Utz Brands i.e., Utz Brands and Campbell Soup go up and down completely randomly.
Pair Corralation between Utz Brands and Campbell Soup
Considering the 90-day investment horizon Utz Brands is expected to generate 1.52 times more return on investment than Campbell Soup. However, Utz Brands is 1.52 times more volatile than Campbell Soup. It trades about 0.01 of its potential returns per unit of risk. Campbell Soup is currently generating about 0.01 per unit of risk. If you would invest 1,755 in Utz Brands on September 12, 2024 and sell it today you would lose (7.00) from holding Utz Brands or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utz Brands vs. Campbell Soup
Performance |
| Timeline |
| Utz Brands |
| Campbell Soup |
Utz Brands and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utz Brands and Campbell Soup
The main advantage of trading using opposite Utz Brands and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utz Brands position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Utz Brands vs. Post Holdings | Utz Brands vs. J J Snack | Utz Brands vs. The Hain Celestial | Utz Brands vs. Bellring Brands LLC |
| Campbell Soup vs. J J Snack | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Lancaster Colony |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |