Correlation Between Mission Produce and SpartanNash

Can any of the company-specific risk be diversified away by investing in both Mission Produce and SpartanNash 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 Mission Produce and SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mission Produce and SpartanNash Co, you can compare the effects of market volatilities on Mission Produce and SpartanNash 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 Mission Produce with a short position of SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mission Produce and SpartanNash.

Diversification Opportunities for Mission Produce and SpartanNash

-0.11

Correlation Coefficient

Mission Produce  SpartanNash

Good diversification

The 3 months correlation between Mission and SpartanNash is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mission Produce and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash and Mission Produce 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 Mission Produce are associated (or correlated) with SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Mission Produce i.e., Mission Produce and SpartanNash go up and down completely randomly.

Pair Corralation between Mission Produce and SpartanNash

Considering the 90-day investment horizon Mission Produce is expected to under-perform the SpartanNash. In addition to that, Mission Produce is 1.35 times more volatile than SpartanNash Co. It trades about -0.03 of its total potential returns per unit of risk. SpartanNash Co is currently generating about 0.07 per unit of volatility. If you would invest  1,876  in SpartanNash Co on November 28, 2024 and sell it today you would earn a total of  146.00  from holding SpartanNash Co or generate 7.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mission Produce  vs.  SpartanNash Co

Mission Produce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mission Produce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Mission Produce is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

SpartanNash

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SpartanNash Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, SpartanNash may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Mission Produce and SpartanNash

The main advantage of trading using opposite Mission Produce and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mission Produce position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.

The idea behind Mission Produce and SpartanNash Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.