Correlation Between Olam International and Andersons
Can any of the company-specific risk be diversified away by investing in both Olam International and Andersons 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 Olam International and Andersons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olam International Limited and The Andersons, you can compare the effects of market volatilities on Olam International and Andersons 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 Olam International with a short position of Andersons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olam International and Andersons.
Diversification Opportunities for Olam International and Andersons
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Olam and Andersons is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Olam International Limited and The Andersons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andersons and Olam International 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 Olam International Limited are associated (or correlated) with Andersons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andersons has no effect on the direction of Olam International i.e., Olam International and Andersons go up and down completely randomly.
Pair Corralation between Olam International and Andersons
If you would invest 5,631 in The Andersons on January 26, 2024 and sell it today you would earn a total of 107.00 from holding The Andersons or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Olam International Limited vs. The Andersons
Performance |
| Timeline |
| Olam International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Andersons |
Olam International and Andersons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olam International and Andersons
The main advantage of trading using opposite Olam International and Andersons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olam International position performs unexpectedly, Andersons 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 Andersons will offset losses from the drop in Andersons' long position.| Olam International vs. Natural Alternatives International | Olam International vs. Marfrig Global Foods | Olam International vs. BBB Foods | Olam International vs. Insteel Industries |
| Andersons vs. Innovative Food Hldg | Andersons vs. Calavo Growers | Andersons vs. AMCON Distributing | Andersons vs. Mission Produce |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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