Correlation Between ADM Endeavors and First Foods

Can any of the company-specific risk be diversified away by investing in both ADM Endeavors and First 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 ADM Endeavors and First Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ADM Endeavors and First Foods Group, you can compare the effects of market volatilities on ADM Endeavors and First 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 ADM Endeavors with a short position of First Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADM Endeavors and First Foods.

Diversification Opportunities for ADM Endeavors and First Foods

0.0

Correlation Coefficient

ADM Endeavors  First Foods

Pay attention - limited upside

The 3 months correlation between ADM and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ADM Endeavors and First Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Foods Group and ADM Endeavors 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 ADM Endeavors are associated (or correlated) with First Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Foods Group has no effect on the direction of ADM Endeavors i.e., ADM Endeavors and First Foods go up and down completely randomly.

Pair Corralation between ADM Endeavors and First Foods

If you would invest  4.50  in ADM Endeavors on May 17, 2025 and sell it today you would lose (0.20) from holding ADM Endeavors or give up 4.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ADM Endeavors  vs.  First Foods Group

ADM Endeavors

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ADM Endeavors are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, ADM Endeavors may actually be approaching a critical reversion point that can send shares even higher in September 2025.

First Foods Group

Risk-Adjusted Performance

Weakest

Over the last 90 days First Foods Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Foods is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ADM Endeavors and First Foods

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

The idea behind ADM Endeavors and First Foods Group 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.