Correlation Between AUSTEVOLL SEAFOOD and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD and CONAGRA FOODS 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 AUSTEVOLL SEAFOOD and CONAGRA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and CONAGRA FOODS, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD and CONAGRA FOODS 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 AUSTEVOLL SEAFOOD with a short position of CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and CONAGRA FOODS.
Diversification Opportunities for AUSTEVOLL SEAFOOD and CONAGRA FOODS
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUSTEVOLL and CONAGRA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD are associated (or correlated) with CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and CONAGRA FOODS
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 4.96 times more return on investment than CONAGRA FOODS. However, AUSTEVOLL SEAFOOD is 4.96 times more volatile than CONAGRA FOODS. It trades about 0.07 of its potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.01 per unit of risk. If you would invest 270.00 in AUSTEVOLL SEAFOOD on August 28, 2024 and sell it today you would earn a total of 596.00 from holding AUSTEVOLL SEAFOOD or generate 220.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. CONAGRA FOODS
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| CONAGRA FOODS |
AUSTEVOLL SEAFOOD and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and CONAGRA FOODS
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| AUSTEVOLL SEAFOOD vs. TITAN MACHINERY | AUSTEVOLL SEAFOOD vs. ADRIATIC METALS LS 013355 | AUSTEVOLL SEAFOOD vs. GREENX METALS LTD | AUSTEVOLL SEAFOOD vs. Granite Construction |
| CONAGRA FOODS vs. Harmony Gold Mining | CONAGRA FOODS vs. WILLIS LEASE FIN | CONAGRA FOODS vs. SHIN ETSU CHEMICAL | CONAGRA FOODS vs. WESTLAKE CHEMICAL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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