Correlation Between Campbell Soup and American Lorain
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and American Lorain 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 Campbell Soup and American Lorain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and American Lorain, you can compare the effects of market volatilities on Campbell Soup and American Lorain 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 Campbell Soup with a short position of American Lorain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and American Lorain.
Diversification Opportunities for Campbell Soup and American Lorain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Campbell and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and American Lorain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Lorain and Campbell Soup 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 Campbell Soup are associated (or correlated) with American Lorain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Lorain has no effect on the direction of Campbell Soup i.e., Campbell Soup and American Lorain go up and down completely randomly.
Pair Corralation between Campbell Soup and American Lorain
If you would invest 4,413 in Campbell Soup on January 26, 2024 and sell it today you would earn a total of 141.00 from holding Campbell Soup or generate 3.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Campbell Soup vs. American Lorain
Performance |
Timeline |
Campbell Soup |
American Lorain |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Campbell Soup and American Lorain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Campbell Soup and American Lorain
The main advantage of trading using opposite Campbell Soup and American Lorain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, American Lorain 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 American Lorain will offset losses from the drop in American Lorain's long position.Campbell Soup vs. General Mills | Campbell Soup vs. Hormel Foods | Campbell Soup vs. Kellanova | Campbell Soup vs. Lamb Weston Holdings |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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