Correlation Between Greencore Group and Premier Foods
Can any of the company-specific risk be diversified away by investing in both Greencore Group and Premier Foods 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 Greencore Group and Premier Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencore Group plc and Premier Foods plc, you can compare the effects of market volatilities on Greencore Group and Premier Foods 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 Greencore Group with a short position of Premier Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencore Group and Premier Foods.
Diversification Opportunities for Greencore Group and Premier Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greencore and Premier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greencore Group plc and Premier Foods plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Foods plc and Greencore Group 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 Greencore Group plc are associated (or correlated) with Premier Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Foods plc has no effect on the direction of Greencore Group i.e., Greencore Group and Premier Foods go up and down completely randomly.
Pair Corralation between Greencore Group and Premier Foods
If you would invest 342.00 in Greencore Group plc on September 4, 2025 and sell it today you would earn a total of 0.00 from holding Greencore Group plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Greencore Group plc vs. Premier Foods plc
Performance |
| Timeline |
| Greencore Group plc |
| Premier Foods plc |
Greencore Group and Premier Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencore Group and Premier Foods
The main advantage of trading using opposite Greencore Group and Premier Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencore Group position performs unexpectedly, Premier Foods 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 Premier Foods will offset losses from the drop in Premier Foods' long position.| Greencore Group vs. Scandinavian Tobacco Group | Greencore Group vs. 51Talk Online Education | Greencore Group vs. Contagious Gaming | Greencore Group vs. Galaxy Gaming |
| Premier Foods vs. Apartment Investment and | Premier Foods vs. TeraForce Technology | Premier Foods vs. Asure Software | Premier Foods vs. Ainsworth Game Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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