Correlation Between Lifeway Foods and ANDRADA MINING
Can any of the company-specific risk be diversified away by investing in both Lifeway Foods and ANDRADA MINING 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 Lifeway Foods and ANDRADA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeway Foods and ANDRADA MINING LTD, you can compare the effects of market volatilities on Lifeway Foods and ANDRADA MINING 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 Lifeway Foods with a short position of ANDRADA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and ANDRADA MINING.
Diversification Opportunities for Lifeway Foods and ANDRADA MINING
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifeway and ANDRADA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods and ANDRADA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDRADA MINING LTD and Lifeway 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 Lifeway Foods are associated (or correlated) with ANDRADA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDRADA MINING LTD has no effect on the direction of Lifeway Foods i.e., Lifeway Foods and ANDRADA MINING go up and down completely randomly.
Pair Corralation between Lifeway Foods and ANDRADA MINING
Assuming the 90 days horizon Lifeway Foods is expected to generate 3.43 times less return on investment than ANDRADA MINING. But when comparing it to its historical volatility, Lifeway Foods is 1.52 times less risky than ANDRADA MINING. It trades about 0.02 of its potential returns per unit of risk. ANDRADA MINING LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.05 in ANDRADA MINING LTD on July 27, 2025 and sell it today you would earn a total of 0.25 from holding ANDRADA MINING LTD or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifeway Foods vs. ANDRADA MINING LTD
Performance |
| Timeline |
| Lifeway Foods |
| ANDRADA MINING LTD |
Lifeway Foods and ANDRADA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeway Foods and ANDRADA MINING
The main advantage of trading using opposite Lifeway Foods and ANDRADA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods position performs unexpectedly, ANDRADA MINING 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 ANDRADA MINING will offset losses from the drop in ANDRADA MINING's long position.| Lifeway Foods vs. Nestl SA | Lifeway Foods vs. Kraft Heinz Co | Lifeway Foods vs. General Mills | Lifeway Foods vs. General Mills |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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