Correlation Between Campbell Soup and Dean Foods
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and Dean Foods 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 Dean Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Dean Foods, you can compare the effects of market volatilities on Campbell Soup and Dean Foods 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 Dean Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Dean Foods.
Diversification Opportunities for Campbell Soup and Dean Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Campbell and Dean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and Dean Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dean Foods 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 Dean Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dean Foods has no effect on the direction of Campbell Soup i.e., Campbell Soup and Dean Foods go up and down completely randomly.
Pair Corralation between Campbell Soup and Dean Foods
If you would invest 4,181 in Campbell Soup on January 20, 2024 and sell it today you would earn a total of 190.00 from holding Campbell Soup or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Campbell Soup vs. Dean Foods
Performance |
| Timeline |
| Campbell Soup |
| Dean Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Campbell Soup and Dean Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Dean Foods
The main advantage of trading using opposite Campbell Soup and Dean Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, Dean Foods 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 Dean Foods will offset losses from the drop in Dean Foods' long position.| Campbell Soup vs. Green Globe International | Campbell Soup vs. Greenlane Holdings | Campbell Soup vs. 22nd Century Group | Campbell Soup vs. 1606 Corp |
| Dean Foods vs. Sunlands Technology Group | Dean Foods vs. Weibo Corp | Dean Foods vs. Torm PLC Class | Dean Foods vs. Pinduoduo |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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