Correlation Between Sany Heavy and Performance Food
Can any of the company-specific risk be diversified away by investing in both Sany Heavy and Performance Food 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 Sany Heavy and Performance Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sany Heavy Equipment and Performance Food Group, you can compare the effects of market volatilities on Sany Heavy and Performance Food 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 Sany Heavy with a short position of Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sany Heavy and Performance Food.
Diversification Opportunities for Sany Heavy and Performance Food
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sany and Performance is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sany Heavy Equipment and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food and Sany Heavy 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 Sany Heavy Equipment are associated (or correlated) with Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Sany Heavy i.e., Sany Heavy and Performance Food go up and down completely randomly.
Pair Corralation between Sany Heavy and Performance Food
Assuming the 90 days horizon Sany Heavy is expected to generate 1.45 times less return on investment than Performance Food. In addition to that, Sany Heavy is 2.31 times more volatile than Performance Food Group. It trades about 0.02 of its total potential returns per unit of risk. Performance Food Group is currently generating about 0.06 per unit of volatility. If you would invest 5,600 in Performance Food Group on September 12, 2024 and sell it today you would earn a total of 2,900 from holding Performance Food Group or generate 51.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sany Heavy Equipment vs. Performance Food Group
Performance |
| Timeline |
| Sany Heavy Equipment |
| Performance Food |
Sany Heavy and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sany Heavy and Performance Food
The main advantage of trading using opposite Sany Heavy and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sany Heavy position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Sany Heavy vs. EAST SIDE GAMES | Sany Heavy vs. National Beverage Corp | Sany Heavy vs. SENECA FOODS A | Sany Heavy vs. CI GAMES SA |
| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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