Correlation Between Steakholder Foods and Calbee

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

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

Diversification Opportunities for Steakholder Foods and Calbee

0.64

Correlation Coefficient

Steakholder Foods  Calbee

Poor diversification

The 3 months correlation between Steakholder and Calbee is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Steakholder Foods and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc and Steakholder 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 Steakholder Foods are associated (or correlated) with Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Steakholder Foods i.e., Steakholder Foods and Calbee go up and down completely randomly.

Pair Corralation between Steakholder Foods and Calbee

Given the investment horizon of 90 days Steakholder Foods is expected to under-perform the Calbee. In addition to that, Steakholder Foods is 2.86 times more volatile than Calbee Inc. It trades about -0.12 of its total potential returns per unit of risk. Calbee Inc is currently generating about -0.15 per unit of volatility. If you would invest  535.00  in Calbee Inc on October 8, 2024 and sell it today you would lose (32.00) from holding Calbee Inc or give up 5.98% of portfolio value over 90 days.

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

Steakholder Foods  vs.  Calbee Inc

Steakholder Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Steakholder Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward-looking signals remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Calbee Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calbee Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental 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 Steakholder Foods and Calbee

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

The idea behind Steakholder Foods and Calbee Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.