Correlation Between Campbell Soup and Freshpet
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and Freshpet 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 Freshpet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Freshpet, you can compare the effects of market volatilities on Campbell Soup and Freshpet 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 Freshpet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Freshpet.
Diversification Opportunities for Campbell Soup and Freshpet
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Campbell and Freshpet is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and Freshpet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshpet 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 Freshpet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshpet has no effect on the direction of Campbell Soup i.e., Campbell Soup and Freshpet go up and down completely randomly.
Pair Corralation between Campbell Soup and Freshpet
Considering the 90-day investment horizon Campbell Soup is expected to generate 10.74 times less return on investment than Freshpet. But when comparing it to its historical volatility, Campbell Soup is 2.3 times less risky than Freshpet. It trades about 0.0 of its potential returns per unit of risk. Freshpet is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,914 in Freshpet on January 16, 2024 and sell it today you would earn a total of 655.00 from holding Freshpet or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campbell Soup vs. Freshpet
Performance |
| Timeline |
| Campbell Soup |
| Freshpet |
Campbell Soup and Freshpet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Freshpet
The main advantage of trading using opposite Campbell Soup and Freshpet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, Freshpet 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 Freshpet will offset losses from the drop in Freshpet's long position.| Campbell Soup vs. Seneca Foods Corp | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Aryzta AG PK |
| Freshpet vs. Seneca Foods Corp | Freshpet vs. Central Garden Pet | Freshpet vs. Central Garden Pet | Freshpet vs. Aryzta AG PK |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| 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 | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |