Correlation Between Mission Produce and Sysco

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

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

Diversification Opportunities for Mission Produce and Sysco

0.54

Correlation Coefficient

Mission Produce  Sysco

Very weak diversification

The 3 months correlation between Mission and Sysco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mission Produce and Sysco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysco 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 Sysco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysco has no effect on the direction of Mission Produce i.e., Mission Produce and Sysco go up and down completely randomly.

Pair Corralation between Mission Produce and Sysco

Considering the 90-day investment horizon Mission Produce is expected to under-perform the Sysco. In addition to that, Mission Produce is 1.65 times more volatile than Sysco. It trades about -0.24 of its total potential returns per unit of risk. Sysco is currently generating about -0.02 per unit of volatility. If you would invest  7,585  in Sysco on December 28, 2024 and sell it today you would lose (181.00) from holding Sysco or give up 2.39% of portfolio value over 90 days.

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

Mission Produce  vs.  Sysco

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 fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Sysco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sysco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Sysco is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mission Produce and Sysco

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

The idea behind Mission Produce and Sysco 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.