Correlation Between Where Food and Strong Global

Can any of the company-specific risk be diversified away by investing in both Where Food and Strong Global 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 Where Food and Strong Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Where Food Comes and Strong Global Entertainment, you can compare the effects of market volatilities on Where Food and Strong Global 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 Where Food with a short position of Strong Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and Strong Global.

Diversification Opportunities for Where Food and Strong Global

-0.27

Correlation Coefficient

Where Food  Strong Global

Very good diversification

The 3 months correlation between Where and Strong is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Strong Global Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strong Global Entert and Where Food 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 Where Food Comes are associated (or correlated) with Strong Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strong Global Entert has no effect on the direction of Where Food i.e., Where Food and Strong Global go up and down completely randomly.

Pair Corralation between Where Food and Strong Global

Given the investment horizon of 90 days Where Food is expected to generate 3.35 times less return on investment than Strong Global. But when comparing it to its historical volatility, Where Food Comes is 4.09 times less risky than Strong Global. It trades about 0.02 of its potential returns per unit of risk. Strong Global Entertainment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  371.00  in Strong Global Entertainment on February 12, 2024 and sell it today you would lose (175.00) from holding Strong Global Entertainment or give up 47.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.4%
Values	Daily Returns

Where Food Comes  vs.  Strong Global Entertainment

Where Food Comes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Where Food Comes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Strong Global Entert

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Strong Global Entertainment are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Strong Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Where Food and Strong Global

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

The idea behind Where Food Comes and Strong Global Entertainment 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.