Correlation Between Lancaster Colony and Dean Foods
Can any of the company-specific risk be diversified away by investing in both Lancaster Colony 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 Lancaster Colony and Dean Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lancaster Colony and Dean Foods, you can compare the effects of market volatilities on Lancaster Colony 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 Lancaster Colony with a short position of Dean Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lancaster Colony and Dean Foods.
Diversification Opportunities for Lancaster Colony and Dean Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lancaster and Dean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lancaster Colony and Dean Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dean Foods and Lancaster Colony 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 Lancaster Colony 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 Lancaster Colony i.e., Lancaster Colony and Dean Foods go up and down completely randomly.
Pair Corralation between Lancaster Colony and Dean Foods
If you would invest (100.00) in Dean Foods on January 25, 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 |
Lancaster Colony vs. Dean Foods
Performance |
| Timeline |
| Lancaster Colony |
| Dean Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lancaster Colony and Dean Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lancaster Colony and Dean Foods
The main advantage of trading using opposite Lancaster Colony and Dean Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lancaster Colony 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.| Lancaster Colony vs. Treehouse Foods | Lancaster Colony vs. John B Sanfilippo | Lancaster Colony vs. Seneca Foods Corp | Lancaster Colony vs. Seneca Foods Corp |
| Dean Foods vs. Continental Beverage Brands | Dean Foods vs. Ambev SA ADR | Dean Foods vs. US GoldMining Common | Dean Foods vs. Sandstorm Gold Ltd |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| 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 | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |