Correlation Between Performance Food and 49456BAV3

Can any of the company-specific risk be diversified away by investing in both Performance Food and 49456BAV3 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 Performance Food and 49456BAV3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Performance Food Group and KMI 48 01 FEB 33, you can compare the effects of market volatilities on Performance Food and 49456BAV3 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 Performance Food with a short position of 49456BAV3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and 49456BAV3.

Diversification Opportunities for Performance Food and 49456BAV3

0.0

Correlation Coefficient

Performance Food  49456BAV3

Pay attention - limited upside

The 3 months correlation between Performance and 49456BAV3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and KMI 48 01 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMI 48 01 and Performance Food 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 Performance Food Group are associated (or correlated) with 49456BAV3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMI 48 01 has no effect on the direction of Performance Food i.e., Performance Food and 49456BAV3 go up and down completely randomly.

Pair Corralation between Performance Food and 49456BAV3

Given the investment horizon of 90 days Performance Food Group is expected to generate 1.78 times more return on investment than 49456BAV3. However, Performance Food is 1.78 times more volatile than KMI 48 01 FEB 33. It trades about 0.05 of its potential returns per unit of risk. KMI 48 01 FEB 33 is currently generating about 0.0 per unit of risk. If you would invest  6,267  in Performance Food Group on October 23, 2024 and sell it today you would earn a total of  2,584  from holding Performance Food Group or generate 41.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.13%
Values	Daily Returns

Performance Food Group  vs.  KMI 48 01 FEB 33

Performance Food

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Food Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Performance Food may actually be approaching a critical reversion point that can send shares even higher in February 2025.

KMI 48 01

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KMI 48 01 FEB 33 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 49456BAV3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Performance Food and 49456BAV3

The main advantage of trading using opposite Performance Food and 49456BAV3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, 49456BAV3 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 49456BAV3 will offset losses from the drop in 49456BAV3's long position.

The idea behind Performance Food Group and KMI 48 01 FEB 33 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.