Correlation Between JM Smucker and Pinnacle Foods
Can any of the company-specific risk be diversified away by investing in both JM Smucker and Pinnacle 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 JM Smucker and Pinnacle Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JM Smucker and Pinnacle Foods, you can compare the effects of market volatilities on JM Smucker and Pinnacle 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 JM Smucker with a short position of Pinnacle Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Smucker and Pinnacle Foods.
Diversification Opportunities for JM Smucker and Pinnacle Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SJM and Pinnacle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JM Smucker and Pinnacle Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle Foods and JM Smucker 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 JM Smucker are associated (or correlated) with Pinnacle Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Foods has no effect on the direction of JM Smucker i.e., JM Smucker and Pinnacle Foods go up and down completely randomly.
Pair Corralation between JM Smucker and Pinnacle Foods
If you would invest (100.00) in Pinnacle Foods on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Pinnacle Foods or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JM Smucker vs. Pinnacle Foods
Performance |
| Timeline |
| JM Smucker |
| Pinnacle Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JM Smucker and Pinnacle Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JM Smucker and Pinnacle Foods
The main advantage of trading using opposite JM Smucker and Pinnacle Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Smucker position performs unexpectedly, Pinnacle 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 Pinnacle Foods will offset losses from the drop in Pinnacle Foods' long position.| JM Smucker vs. Bunge Limited | JM Smucker vs. Archer Daniels Midland | JM Smucker vs. Fresh Del Monte | JM Smucker vs. Limoneira Co |
| Pinnacle Foods vs. Jacobs Solutions | Pinnacle Foods vs. Western Acquisition Ventures | Pinnacle Foods vs. Avarone Metals | Pinnacle Foods vs. Inter Parfums |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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