Correlation Between Healthy Coffee and Campbell Soup

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

By analyzing existing cross correlation between Healthy Coffee International and Campbell Soup, you can compare the effects of market volatilities on Healthy Coffee and Campbell Soup 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 Healthy Coffee with a short position of Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthy Coffee and Campbell Soup.

Diversification Opportunities for Healthy Coffee and Campbell Soup

0.0

Correlation Coefficient

Healthy Coffee  Campbell Soup

Pay attention - limited upside

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

Pair Corralation between Healthy Coffee and Campbell Soup

If you would invest  0.01  in Healthy Coffee International on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Healthy Coffee International or generate 0.0% return on investment over 90 days.

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

Healthy Coffee International  vs.  Campbell Soup

Healthy Coffee Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Healthy Coffee International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Healthy Coffee is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Campbell Soup

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Campbell Soup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Healthy Coffee and Campbell Soup

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

The idea behind Healthy Coffee International and Campbell Soup 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 CEOs Directory module to screen CEOs from public companies around the world.