Correlation Between CONAGRA and BigBearai Holdings

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

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

Diversification Opportunities for CONAGRA and BigBearai Holdings

0.0

Correlation Coefficient

CONAGRA  BigBearai Holdings

Pay attention - limited upside

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

Pair Corralation between CONAGRA and BigBearai Holdings

If you would invest  338.00  in BigBearai Holdings on October 7, 2024 and sell it today you would earn a total of  115.00  from holding BigBearai Holdings or generate 34.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

CONAGRA BRANDS INC  vs.  BigBearai Holdings

CONAGRA BRANDS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CONAGRA BRANDS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CONAGRA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BigBearai Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BigBearai Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, BigBearai Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CONAGRA and BigBearai Holdings

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

The idea behind CONAGRA BRANDS INC and BigBearai Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.