Correlation Between Pinnacle Foods and Bunge
Can any of the company-specific risk be diversified away by investing in both Pinnacle Foods and Bunge 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 Pinnacle Foods and Bunge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinnacle Foods and Bunge Limited, you can compare the effects of market volatilities on Pinnacle Foods and Bunge 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 Pinnacle Foods with a short position of Bunge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinnacle Foods and Bunge.
Diversification Opportunities for Pinnacle Foods and Bunge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pinnacle and Bunge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Foods and Bunge Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bunge Limited and Pinnacle 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 Pinnacle Foods are associated (or correlated) with Bunge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bunge Limited has no effect on the direction of Pinnacle Foods i.e., Pinnacle Foods and Bunge go up and down completely randomly.
Pair Corralation between Pinnacle Foods and Bunge
If you would invest 9,994 in Bunge Limited on January 24, 2024 and sell it today you would earn a total of 981.00 from holding Bunge Limited or generate 9.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Pinnacle Foods vs. Bunge Limited
Performance |
Timeline |
Pinnacle Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bunge Limited |
Pinnacle Foods and Bunge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pinnacle Foods and Bunge
The main advantage of trading using opposite Pinnacle Foods and Bunge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Foods position performs unexpectedly, Bunge 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 Bunge will offset losses from the drop in Bunge's long position.Pinnacle Foods vs. Artisan Partners Asset | Pinnacle Foods vs. HydroGraph Clean Power | Pinnacle Foods vs. Pintec Technology Holdings | Pinnacle Foods vs. Univest Pennsylvania |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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