Correlation Between First Foods and Pernod Ricard
Can any of the company-specific risk be diversified away by investing in both First Foods and Pernod Ricard 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 Pernod Ricard 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 Pernod Ricard SA, you can compare the effects of market volatilities on First Foods and Pernod Ricard 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 Pernod Ricard. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Foods and Pernod Ricard.
Diversification Opportunities for First Foods and Pernod Ricard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Pernod is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Foods Group and Pernod Ricard SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pernod Ricard SA 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 Pernod Ricard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pernod Ricard SA has no effect on the direction of First Foods i.e., First Foods and Pernod Ricard go up and down completely randomly.
Pair Corralation between First Foods and Pernod Ricard
If you would invest 0.02 in First Foods Group on September 5, 2025 and sell it today you would earn a total of 0.00 from holding First Foods Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Foods Group vs. Pernod Ricard SA
Performance |
| Timeline |
| First Foods Group |
| Pernod Ricard SA |
First Foods and Pernod Ricard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Foods and Pernod Ricard
The main advantage of trading using opposite First Foods and Pernod Ricard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Foods position performs unexpectedly, Pernod Ricard 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 Pernod Ricard will offset losses from the drop in Pernod Ricard's long position.| First Foods vs. Cintas | First Foods vs. Thomson Reuters | First Foods vs. Wolters Kluwer NV | First Foods vs. Wolters Kluwer NV |
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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 Stocks Directory module to find actively traded stocks across global markets.
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