Correlation Between Tyson Foods and AURELIUS Equity

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

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

Diversification Opportunities for Tyson Foods and AURELIUS Equity

0.0

Correlation Coefficient

Tyson Foods  AURELIUS Equity

Pay attention - limited upside

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

Pair Corralation between Tyson Foods and AURELIUS Equity

If you would invest  5,473  in Tyson Foods on December 23, 2024 and sell it today you would earn a total of  69.00  from holding Tyson Foods or generate 1.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Tyson Foods  vs.  AURELIUS Equity Opportunities

Tyson Foods

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tyson Foods are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Tyson Foods is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AURELIUS Equity Oppo

Risk-Adjusted Performance

Very Weak

Over the last 90 days AURELIUS Equity Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AURELIUS Equity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tyson Foods and AURELIUS Equity

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

The idea behind Tyson Foods and AURELIUS Equity Opportunities 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.