Correlation Between ConAgra Foods and Freshpet
Can any of the company-specific risk be diversified away by investing in both ConAgra Foods and Freshpet 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 Foods and Freshpet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConAgra Foods and Freshpet, you can compare the effects of market volatilities on ConAgra Foods and Freshpet 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 Foods with a short position of Freshpet. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConAgra Foods and Freshpet.
Diversification Opportunities for ConAgra Foods and Freshpet
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ConAgra and Freshpet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ConAgra Foods and Freshpet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshpet and ConAgra 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 ConAgra Foods are associated (or correlated) with Freshpet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshpet has no effect on the direction of ConAgra Foods i.e., ConAgra Foods and Freshpet go up and down completely randomly.
Pair Corralation between ConAgra Foods and Freshpet
Considering the 90-day investment horizon ConAgra Foods is expected to under-perform the Freshpet. But the stock apears to be less risky and, when comparing its historical volatility, ConAgra Foods is 1.97 times less risky than Freshpet. The stock trades about -0.03 of its potential returns per unit of risk. The Freshpet is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,620 in Freshpet on January 19, 2024 and sell it today you would earn a total of 3,764 from holding Freshpet or generate 56.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConAgra Foods vs. Freshpet
Performance |
| Timeline |
| ConAgra Foods |
| Freshpet |
ConAgra Foods and Freshpet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConAgra Foods and Freshpet
The main advantage of trading using opposite ConAgra Foods and Freshpet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConAgra Foods position performs unexpectedly, Freshpet 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 Freshpet will offset losses from the drop in Freshpet's long position.| ConAgra Foods vs. Central Garden Pet | ConAgra Foods vs. Central Garden Pet | ConAgra Foods vs. The A2 Milk | ConAgra Foods vs. Altavoz Entertainment |
| Freshpet vs. Central Garden Pet | Freshpet vs. Central Garden Pet | Freshpet vs. The A2 Milk | Freshpet vs. Altavoz Entertainment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |