Correlation Between Very Good and General Mills

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

By analyzing existing cross correlation between The Very Good and General Mills, you can compare the effects of market volatilities on Very Good and General Mills 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 Very Good with a short position of General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Very Good and General Mills.

Diversification Opportunities for Very Good and General Mills

-0.42

Correlation Coefficient

Very Good  General Mills

Very good diversification

The 3 months correlation between Very and General is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Very Good and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills and Very Good 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 The Very Good are associated (or correlated) with General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Very Good i.e., Very Good and General Mills go up and down completely randomly.

Pair Corralation between Very Good and General Mills

If you would invest  1.60  in The Very Good on September 2, 2024 and sell it today you would earn a total of  0.00  from holding The Very Good or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

The Very Good  vs.  General Mills

Very Good

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Very Good has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Very Good is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

General Mills

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days General Mills has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Very Good and General Mills

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

The idea behind The Very Good and General Mills 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.