Correlation Between Flowers Foods and First Trust
Can any of the company-specific risk be diversified away by investing in both Flowers Foods and First Trust 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 Flowers Foods and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowers Foods and First Trust Short, you can compare the effects of market volatilities on Flowers Foods and First Trust 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 Flowers Foods with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and First Trust.
Diversification Opportunities for Flowers Foods and First Trust
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flowers and First is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short and Flowers 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 Flowers Foods are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Short has no effect on the direction of Flowers Foods i.e., Flowers Foods and First Trust go up and down completely randomly.
Pair Corralation between Flowers Foods and First Trust
Considering the 90-day investment horizon Flowers Foods is expected to under-perform the First Trust. In addition to that, Flowers Foods is 13.11 times more volatile than First Trust Short. It trades about -0.06 of its total potential returns per unit of risk. First Trust Short is currently generating about 0.27 per unit of volatility. If you would invest 1,779 in First Trust Short on June 11, 2025 and sell it today you would earn a total of 37.00 from holding First Trust Short or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flowers Foods vs. First Trust Short
Performance |
| Timeline |
| Flowers Foods |
| First Trust Short |
Flowers Foods and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowers Foods and First Trust
The main advantage of trading using opposite Flowers Foods and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Flowers Foods vs. Bunge Limited | Flowers Foods vs. Lamb Weston Holdings | Flowers Foods vs. Altria Group | Flowers Foods vs. Philip Morris International |
| First Trust vs. Simt Real Estate | First Trust vs. Prudential Real Estate | First Trust vs. Global Real Estate | First Trust vs. Aew Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |