Correlation Between Stryve Foods and Whole Earth

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

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

Diversification Opportunities for Stryve Foods and Whole Earth

0.0

Correlation Coefficient

Stryve Foods  Whole Earth

Pay attention - limited upside

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

Pair Corralation between Stryve Foods and Whole Earth

If you would invest  65.00  in Stryve Foods on December 28, 2024 and sell it today you would earn a total of  1.00  from holding Stryve Foods or generate 1.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Stryve Foods  vs.  Whole Earth Brands

Stryve Foods

Risk-Adjusted Performance

Insignificant

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Stryve Foods showed solid returns over the last few months and may actually be approaching a breakup point.

Whole Earth Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Whole Earth Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Whole Earth is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Stryve Foods and Whole Earth

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

The idea behind Stryve Foods and Whole Earth Brands 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.