Correlation Between Utz Brands and General Mills
Can any of the company-specific risk be diversified away by investing in both Utz Brands and General Mills 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 General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utz Brands and General Mills, you can compare the effects of market volatilities on Utz Brands and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utz Brands and General Mills.
Diversification Opportunities for Utz Brands and General Mills
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Utz and General is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Utz Brands i.e., Utz Brands and General Mills go up and down completely randomly.
Pair Corralation between Utz Brands and General Mills
Considering the 90-day investment horizon Utz Brands is expected to generate 1.38 times more return on investment than General Mills. However, Utz Brands is 1.38 times more volatile than General Mills. It trades about 0.14 of its potential returns per unit of risk. General Mills is currently generating about 0.07 per unit of risk. If you would invest 1,657 in Utz Brands on September 14, 2024 and sell it today you would earn a total of 68.00 from holding Utz Brands or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utz Brands vs. General Mills
Performance |
| Timeline |
| Utz Brands |
| General Mills |
Utz Brands and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utz Brands and General Mills
The main advantage of trading using opposite Utz Brands and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utz Brands position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| Utz Brands vs. General Mills | Utz Brands vs. Campbell Soup | Utz Brands vs. McCormick Company Incorporated | Utz Brands vs. Lamb Weston Holdings |
| General Mills vs. Campbell Soup | General Mills vs. McCormick Company Incorporated | General Mills vs. Lamb Weston Holdings | General Mills vs. JM Smucker |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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