Correlation Between Freshpet and ConAgra Brands

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

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Can any of the company-specific risk be diversified away by investing in both Freshpet and ConAgra Brands at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Freshpet and ConAgra Brands into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Freshpet and ConAgra Brands

0.76
Correlation
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Poor diversification

The 3 months correlation between Freshpet and ConAgra is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Freshpet Inc and ConAgra Brands Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Brands and Freshpet 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 Freshpet are associated (or correlated) with ConAgra Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Brands has no effect on the direction of Freshpet i.e. Freshpet and ConAgra Brands go up and down completely randomly.

Pair Corralation between Freshpet and ConAgra Brands

Given the investment horizon of 30 days, Freshpet is expected to generate 1.87 times more return on investment than ConAgra Brands. However, Freshpet is 1.87 times more volatile than ConAgra Brands. It trades about 0.06 of its potential returns per unit of risk. ConAgra Brands is currently generating about 0.11 per unit of risk. If you would invest  6,925  in Freshpet on April 30, 2020 and sell it today you would earn a total of  793.00  from holding Freshpet or generate 11.45% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Freshpet Inc  vs.  ConAgra Brands Inc

 Performance (%) 
      Timeline 
Freshpet 
44

Freshpet Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Freshpet are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively weak essential indicators, Freshpet unveiled solid returns over the last few months and may actually be approaching a breakup point.
ConAgra Brands 
77

ConAgra Brands Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ConAgra Brands are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, ConAgra Brands exhibited solid returns over the last few months and may actually be approaching a breakup point.

Freshpet and ConAgra Brands Volatility Contrast

 Predicted Return Density 
      Returns 
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