Correlation Between Fresh Del and SCREEN Holdings

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

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

Diversification Opportunities for Fresh Del and SCREEN Holdings

-0.34

Correlation Coefficient

Fresh Del  SCREEN Holdings

Very good diversification

The 3 months correlation between Fresh and SCREEN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fresh Del Monte and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN Holdings and Fresh Del 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 Fresh Del Monte are associated (or correlated) with SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of Fresh Del i.e., Fresh Del and SCREEN Holdings go up and down completely randomly.

Pair Corralation between Fresh Del and SCREEN Holdings

If you would invest  7,097  in SCREEN Holdings Co on October 22, 2024 and sell it today you would earn a total of  0.00  from holding SCREEN Holdings Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	10.53%
Values	Daily Returns

Fresh Del Monte  vs.  SCREEN Holdings Co

Fresh Del Monte

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fresh Del Monte are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, Fresh Del may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SCREEN Holdings

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days SCREEN Holdings Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak basic indicators, SCREEN Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fresh Del and SCREEN Holdings

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

The idea behind Fresh Del Monte and SCREEN Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.