Correlation Between Laird Superfood and BG Foods
Can any of the company-specific risk be diversified away by investing in both Laird Superfood and BG 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 Laird Superfood and BG Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laird Superfood and BG Foods, you can compare the effects of market volatilities on Laird Superfood and BG 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 Laird Superfood with a short position of BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laird Superfood and BG Foods.
Diversification Opportunities for Laird Superfood and BG Foods
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laird and BGS is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Laird Superfood and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods and Laird Superfood 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 Laird Superfood are associated (or correlated) with BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Laird Superfood i.e., Laird Superfood and BG Foods go up and down completely randomly.
Pair Corralation between Laird Superfood and BG Foods
Considering the 90-day investment horizon Laird Superfood is expected to generate 1.04 times more return on investment than BG Foods. However, Laird Superfood is 1.04 times more volatile than BG Foods. It trades about 0.11 of its potential returns per unit of risk. BG Foods is currently generating about -0.18 per unit of risk. If you would invest 522.00 in Laird Superfood on March 10, 2025 and sell it today you would earn a total of 149.00 from holding Laird Superfood or generate 28.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laird Superfood vs. BG Foods
Performance |
| Timeline |
| Laird Superfood |
| BG Foods |
Laird Superfood and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laird Superfood and BG Foods
The main advantage of trading using opposite Laird Superfood and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laird Superfood position performs unexpectedly, BG 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 BG Foods will offset losses from the drop in BG Foods' long position.| Laird Superfood vs. Sharing Services Global | Laird Superfood vs. Bit Origin | Laird Superfood vs. Planet Green Holdings | Laird Superfood vs. The Planting Hope |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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