Correlation Between Stryve Foods and Yuenglings Ice

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

By analyzing existing cross correlation between Stryve Foods and Yuenglings Ice Cream, you can compare the effects of market volatilities on Stryve Foods and Yuenglings Ice 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 Yuenglings Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Yuenglings Ice.

Diversification Opportunities for Stryve Foods and Yuenglings Ice

0.57

Correlation Coefficient

Stryve Foods  Yuenglings Ice

Very weak diversification

The 3 months correlation between Stryve and Yuenglings is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods and Yuenglings Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuenglings Ice Cream 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 Yuenglings Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuenglings Ice Cream has no effect on the direction of Stryve Foods i.e., Stryve Foods and Yuenglings Ice go up and down completely randomly.

Pair Corralation between Stryve Foods and Yuenglings Ice

Given the investment horizon of 90 days Stryve Foods is expected to under-perform the Yuenglings Ice. But the stock apears to be less risky and, when comparing its historical volatility, Stryve Foods is 3.76 times less risky than Yuenglings Ice. The stock trades about -0.07 of its potential returns per unit of risk. The Yuenglings Ice Cream is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.23  in Yuenglings Ice Cream on September 4, 2024 and sell it today you would lose (0.07) from holding Yuenglings Ice Cream or give up 30.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Stryve Foods  vs.  Yuenglings Ice Cream

Stryve Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Yuenglings Ice Cream

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Yuenglings Ice Cream are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Yuenglings Ice displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stryve Foods and Yuenglings Ice

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

The idea behind Stryve Foods and Yuenglings Ice Cream 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.

Check out your portfolio center.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.