Correlation Between Campbell Soup and BG Foods
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and BG 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 Campbell Soup and BG Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and BG Foods, you can compare the effects of market volatilities on Campbell Soup and BG 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 Campbell Soup with a short position of BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and BG Foods.
Diversification Opportunities for Campbell Soup and BG Foods
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Campbell and BGS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods and Campbell Soup 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 Campbell Soup are associated (or correlated) with BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Campbell Soup i.e., Campbell Soup and BG Foods go up and down completely randomly.
Pair Corralation between Campbell Soup and BG Foods
Considering the 90-day investment horizon Campbell Soup is expected to generate 0.82 times more return on investment than BG Foods. However, Campbell Soup is 1.21 times less risky than BG Foods. It trades about 0.07 of its potential returns per unit of risk. BG Foods is currently generating about -0.06 per unit of risk. If you would invest 4,299 in Campbell Soup on January 20, 2024 and sell it today you would earn a total of 72.00 from holding Campbell Soup or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campbell Soup vs. BG Foods
Performance |
| Timeline |
| Campbell Soup |
| BG Foods |
Campbell Soup and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and BG Foods
The main advantage of trading using opposite Campbell Soup and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, BG 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 BG Foods will offset losses from the drop in BG Foods' long position.| Campbell Soup vs. Green Globe International | Campbell Soup vs. Greenlane Holdings | Campbell Soup vs. 22nd Century Group | Campbell Soup vs. 1606 Corp |
| BG Foods vs. Green Globe International | BG Foods vs. Greenlane Holdings | BG Foods vs. 22nd Century Group | BG Foods vs. 1606 Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |