Correlation Between JM Smucker and American Lorain
Can any of the company-specific risk be diversified away by investing in both JM Smucker and American Lorain 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 JM Smucker and American Lorain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JM Smucker and American Lorain, you can compare the effects of market volatilities on JM Smucker and American Lorain 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 JM Smucker with a short position of American Lorain. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Smucker and American Lorain.
Diversification Opportunities for JM Smucker and American Lorain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SJM and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JM Smucker and American Lorain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Lorain and JM Smucker 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 JM Smucker are associated (or correlated) with American Lorain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Lorain has no effect on the direction of JM Smucker i.e., JM Smucker and American Lorain go up and down completely randomly.
Pair Corralation between JM Smucker and American Lorain
If you would invest (100.00) in American Lorain on January 25, 2024 and sell it today you would earn a total of 100.00 from holding American Lorain 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 |
JM Smucker vs. American Lorain
Performance |
Timeline |
JM Smucker |
American Lorain |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JM Smucker and American Lorain Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JM Smucker and American Lorain
The main advantage of trading using opposite JM Smucker and American Lorain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Smucker position performs unexpectedly, American Lorain 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 American Lorain will offset losses from the drop in American Lorain's long position.JM Smucker vs. ConAgra Foods | JM Smucker vs. Kellanova | JM Smucker vs. General Mills | JM Smucker vs. Hormel Foods |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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