Correlation Between ConAgra Foods and FirstSun Capital

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

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

Diversification Opportunities for ConAgra Foods and FirstSun Capital

0.7

Correlation Coefficient

ConAgra Foods  FirstSun Capital

Poor diversification

The 3 months correlation between ConAgra and FirstSun is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ConAgra Foods and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp and ConAgra Foods 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 ConAgra Foods are associated (or correlated) with FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of ConAgra Foods i.e., ConAgra Foods and FirstSun Capital go up and down completely randomly.

Pair Corralation between ConAgra Foods and FirstSun Capital

Considering the 90-day investment horizon ConAgra Foods is expected to generate 0.51 times more return on investment than FirstSun Capital. However, ConAgra Foods is 1.96 times less risky than FirstSun Capital. It trades about -0.04 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.05 per unit of risk. If you would invest  1,856  in ConAgra Foods on September 4, 2025 and sell it today you would lose (89.00) from holding ConAgra Foods or give up 4.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ConAgra Foods  vs.  FirstSun Capital Bancorp

ConAgra Foods

Risk-Adjusted Performance

Weakest

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

FirstSun Capital Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days FirstSun Capital Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with ConAgra Foods and FirstSun Capital

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

The idea behind ConAgra Foods and FirstSun Capital Bancorp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.