Correlation Between ConAgra Foods and Elamex SA

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

By analyzing existing cross correlation between ConAgra Foods and Elamex SA de, you can compare the effects of market volatilities on ConAgra Foods and Elamex SA 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 ConAgra Foods with a short position of Elamex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConAgra Foods and Elamex SA.

Diversification Opportunities for ConAgra Foods and Elamex SA

0.0

Correlation Coefficient

ConAgra Foods  Elamex SA

Pay attention - limited upside

The 3 months correlation between ConAgra and Elamex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ConAgra Foods and Elamex SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elamex SA de and ConAgra Foods 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 ConAgra Foods are associated (or correlated) with Elamex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elamex SA de has no effect on the direction of ConAgra Foods i.e., ConAgra Foods and Elamex SA go up and down completely randomly.

Pair Corralation between ConAgra Foods and Elamex SA

If you would invest  215.00  in Elamex SA de on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Elamex SA de or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

ConAgra Foods  vs.  Elamex SA de

ConAgra Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days ConAgra Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ConAgra Foods is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Elamex SA de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elamex SA de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Elamex SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ConAgra Foods and Elamex SA

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

The idea behind ConAgra Foods and Elamex SA de 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.