Correlation Between Connected Media and Fresh Del

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

By analyzing existing cross correlation between Connected Media Tech and Fresh Del Monte, you can compare the effects of market volatilities on Connected Media and Fresh Del 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 Connected Media with a short position of Fresh Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Connected Media and Fresh Del.

Diversification Opportunities for Connected Media and Fresh Del

0.0

Correlation Coefficient

Connected Media  Fresh Del

Pay attention - limited upside

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

Pair Corralation between Connected Media and Fresh Del

If you would invest  3,310  in Fresh Del Monte on May 3, 2025 and sell it today you would earn a total of  449.00  from holding Fresh Del Monte or generate 13.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Connected Media Tech  vs.  Fresh Del Monte

Connected Media Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Connected Media Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Connected Media is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Fresh Del Monte

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fresh Del Monte are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, Fresh Del reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Connected Media and Fresh Del

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

The idea behind Connected Media Tech and Fresh Del Monte 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.