Correlation Between Ingredion Incorporated and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both Ingredion Incorporated and Grand Canyon 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 Ingredion Incorporated and Grand Canyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingredion Incorporated and Grand Canyon Education, you can compare the effects of market volatilities on Ingredion Incorporated and Grand Canyon 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 Ingredion Incorporated with a short position of Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingredion Incorporated and Grand Canyon.
Diversification Opportunities for Ingredion Incorporated and Grand Canyon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ingredion and Grand is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ingredion Incorporated and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education and Ingredion Incorporated 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 Ingredion Incorporated are associated (or correlated) with Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of Ingredion Incorporated i.e., Ingredion Incorporated and Grand Canyon go up and down completely randomly.
Pair Corralation between Ingredion Incorporated and Grand Canyon
Given the investment horizon of 90 days Ingredion Incorporated is expected to generate 0.55 times more return on investment than Grand Canyon. However, Ingredion Incorporated is 1.83 times less risky than Grand Canyon. It trades about -0.11 of its potential returns per unit of risk. Grand Canyon Education is currently generating about -0.19 per unit of risk. If you would invest 11,934 in Ingredion Incorporated on October 6, 2025 and sell it today you would lose (955.00) from holding Ingredion Incorporated or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingredion Incorporated vs. Grand Canyon Education
Performance |
| Timeline |
| Ingredion Incorporated |
| Grand Canyon Education |
Ingredion Incorporated and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingredion Incorporated and Grand Canyon
The main advantage of trading using opposite Ingredion Incorporated and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingredion Incorporated position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| Ingredion Incorporated vs. ConAgra Foods | Ingredion Incorporated vs. Campbells Co | Ingredion Incorporated vs. Pilgrims Pride Corp | Ingredion Incorporated vs. Post Holdings |
| Grand Canyon vs. Stride Inc | Grand Canyon vs. Adtalem Global Education | Grand Canyon vs. TAL Education Group | Grand Canyon vs. Laureate Education |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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