Correlation Between Flowers Foods and Blackrock International

By analyzing existing cross correlation between Flowers Foods and Blackrock International Dividend, you can compare the effects of market volatilities on Flowers Foods and Blackrock International 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 Flowers Foods with a short position of Blackrock International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and Blackrock International.

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Can any of the company-specific risk be diversified away by investing in both Flowers Foods and Blackrock International 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 Flowers Foods and Blackrock International into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Flowers Foods and Blackrock International

0.23
  Correlation Coefficient
Flowers Foods
Blackrock International

Modest diversification

The 3 months correlation between Flowers and Blackrock is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods and Blackrock International Divide in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Blackrock International and Flowers 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 Flowers Foods are associated (or correlated) with Blackrock International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock International has no effect on the direction of Flowers Foods i.e., Flowers Foods and Blackrock International go up and down completely randomly.

Pair Corralation between Flowers Foods and Blackrock International

Considering the 90-day investment horizon Flowers Foods is expected to generate 1.56 times more return on investment than Blackrock International. However, Flowers Foods is 1.56 times more volatile than Blackrock International Dividend. It trades about 0.06 of its potential returns per unit of risk. Blackrock International Dividend is currently generating about 0.06 per unit of risk. If you would invest  2,214  in Flowers Foods on September 8, 2021 and sell it today you would earn a total of  376.00  from holding Flowers Foods or generate 16.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.6%
ValuesDaily Returns

Flowers Foods  vs.  Blackrock International Divide

 Performance (%) 
      Timeline 
Flowers Foods 
Flowers Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Flowers Foods are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Flowers Foods may actually be approaching a critical reversion point that can send shares even higher in January 2022.

Flowers Price Channel

Blackrock International 
Blackrock Performance
0 of 100
Over the last 90 days Blackrock International Dividend has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, Blackrock International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Flowers Foods and Blackrock International Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Flowers Foods and Blackrock International

The main advantage of trading using opposite Flowers Foods and Blackrock International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods position performs unexpectedly, Blackrock International 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 Blackrock International will offset losses from the drop in Blackrock International's long position.

Flowers Foods

Pair trading matchups for Flowers Foods

The idea behind Flowers Foods and Blackrock International Dividend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Blackrock International Dividend

Pair trading matchups for Blackrock International

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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