Correlation Between Save Foods and Corteva

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

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

Diversification Opportunities for Save Foods and Corteva

0.0

Correlation Coefficient

Save Foods  Corteva

Pay attention - limited upside

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

Pair Corralation between Save Foods and Corteva

If you would invest  5,641  in Corteva on December 28, 2024 and sell it today you would earn a total of  629.00  from holding Corteva or generate 11.15% return on investment over 90 days.

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

Save Foods  vs.  Corteva

Save Foods

Risk-Adjusted Performance

Very Weak

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

Corteva

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corteva are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Corteva may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Save Foods and Corteva

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

The idea behind Save Foods and Corteva 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.