Correlation Between Farmer Bros and Dean Foods
Can any of the company-specific risk be diversified away by investing in both Farmer Bros 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 Farmer Bros and Dean Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmer Bros Co and Dean Foods, you can compare the effects of market volatilities on Farmer Bros 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 Farmer Bros with a short position of Dean Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmer Bros and Dean Foods.
Diversification Opportunities for Farmer Bros and Dean Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Farmer and Dean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Farmer Bros Co and Dean Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dean Foods and Farmer Bros 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 Farmer Bros Co 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 Farmer Bros i.e., Farmer Bros and Dean Foods go up and down completely randomly.
Pair Corralation between Farmer Bros and Dean Foods
If you would invest (100.00) in Dean Foods on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Dean Foods or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Farmer Bros Co vs. Dean Foods
Performance |
| Timeline |
| Farmer Bros |
| Dean Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Farmer Bros and Dean Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmer Bros and Dean Foods
The main advantage of trading using opposite Farmer Bros and Dean Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmer Bros 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.| Farmer Bros vs. Bunge Limited | Farmer Bros vs. Archer Daniels Midland | Farmer Bros vs. Fresh Del Monte | Farmer Bros vs. Limoneira Co |
| Dean Foods vs. Vita Coco | Dean Foods vs. Flexible Solutions International | Dean Foods vs. NL Industries | Dean Foods vs. Dow Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |