Correlation Between First Foods and ADM Endeavors

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

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

Diversification Opportunities for First Foods and ADM Endeavors

0.0

Correlation Coefficient

First Foods  ADM Endeavors

Pay attention - limited upside

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

Pair Corralation between First Foods and ADM Endeavors

If you would invest  4.20  in ADM Endeavors on May 13, 2025 and sell it today you would lose (0.10) from holding ADM Endeavors or give up 2.38% of portfolio value over 90 days.

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

First Foods Group  vs.  ADM Endeavors

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

ADM Endeavors

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ADM Endeavors are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, ADM Endeavors reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with First Foods and ADM Endeavors

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

The idea behind First Foods Group and ADM Endeavors 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.