Correlation Between Calbee and Stryve Foods

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

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

Diversification Opportunities for Calbee and Stryve Foods

0.59

Correlation Coefficient

Calbee  Stryve Foods

Very weak diversification

The 3 months correlation between Calbee and Stryve is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calbee Inc and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and Calbee 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 Calbee Inc are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of Calbee i.e., Calbee and Stryve Foods go up and down completely randomly.

Pair Corralation between Calbee and Stryve Foods

Assuming the 90 days horizon Calbee Inc is expected to generate 0.8 times more return on investment than Stryve Foods. However, Calbee Inc is 1.25 times less risky than Stryve Foods. It trades about 0.02 of its potential returns per unit of risk. Stryve Foods is currently generating about -0.69 per unit of risk. If you would invest  495.00  in Calbee Inc on September 24, 2024 and sell it today you would earn a total of  2.00  from holding Calbee Inc or generate 0.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Calbee Inc  vs.  Stryve Foods

Calbee Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calbee Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Stryve Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Calbee and Stryve Foods

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

The idea behind Calbee Inc and Stryve Foods 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.