Correlation Between Bellring Brands and Utz Brands

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

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

Diversification Opportunities for Bellring Brands and Utz Brands

-0.57

Correlation Coefficient

Bellring Brands  Utz Brands

Excellent diversification

The 3 months correlation between Bellring and Utz is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bellring Brands LLC and Utz Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utz Brands and Bellring Brands 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 Bellring Brands LLC are associated (or correlated) with Utz Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utz Brands has no effect on the direction of Bellring Brands i.e., Bellring Brands and Utz Brands go up and down completely randomly.

Pair Corralation between Bellring Brands and Utz Brands

Given the investment horizon of 90 days Bellring Brands LLC is expected to under-perform the Utz Brands. In addition to that, Bellring Brands is 1.05 times more volatile than Utz Brands. It trades about -0.11 of its total potential returns per unit of risk. Utz Brands is currently generating about 0.11 per unit of volatility. If you would invest  1,205  in Utz Brands on May 7, 2025 and sell it today you would earn a total of  170.00  from holding Utz Brands or generate 14.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bellring Brands LLC  vs.  Utz Brands

Bellring Brands LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bellring Brands LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Utz Brands

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Utz Brands are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Utz Brands showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bellring Brands and Utz Brands

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

The idea behind Bellring Brands LLC and Utz Brands 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.