Correlation Between JM Smucker and Dean Foods
Can any of the company-specific risk be diversified away by investing in both JM Smucker 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 JM Smucker and Dean Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JM Smucker and Dean Foods, you can compare the effects of market volatilities on JM Smucker 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 JM Smucker with a short position of Dean Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Smucker and Dean Foods.
Diversification Opportunities for JM Smucker and Dean Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SJM and Dean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JM Smucker and Dean Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dean Foods 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 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 JM Smucker i.e., JM Smucker and Dean Foods go up and down completely randomly.
Pair Corralation between JM Smucker and Dean Foods
If you would invest (100.00) in Dean Foods on January 19, 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 |
JM Smucker vs. Dean Foods
Performance |
| Timeline |
| JM Smucker |
| Dean Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JM Smucker and Dean Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JM Smucker and Dean Foods
The main advantage of trading using opposite JM Smucker and Dean Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Smucker 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.| JM Smucker vs. Central Garden Pet | JM Smucker vs. Central Garden Pet | JM Smucker vs. The A2 Milk | JM Smucker vs. Altavoz Entertainment |
| Dean Foods vs. Stagwell | Dean Foods vs. Iridium Communications | Dean Foods vs. Sphere Entertainment Co | Dean Foods vs. KVH Industries |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |