Correlation Between McCormick Company and Seaboard
Can any of the company-specific risk be diversified away by investing in both McCormick Company and Seaboard 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 McCormick Company and Seaboard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McCormick Company Incorporated and Seaboard, you can compare the effects of market volatilities on McCormick Company and Seaboard 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 McCormick Company with a short position of Seaboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of McCormick Company and Seaboard.
Diversification Opportunities for McCormick Company and Seaboard
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between McCormick and Seaboard is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding McCormick Company Incorporated and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard and McCormick Company 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 McCormick Company Incorporated are associated (or correlated) with Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of McCormick Company i.e., McCormick Company and Seaboard go up and down completely randomly.
Pair Corralation between McCormick Company and Seaboard
Considering the 90-day investment horizon McCormick Company Incorporated is expected to under-perform the Seaboard. But the etf apears to be less risky and, when comparing its historical volatility, McCormick Company Incorporated is 1.16 times less risky than Seaboard. The etf trades about -0.03 of its potential returns per unit of risk. The Seaboard is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 273,924 in Seaboard on June 3, 2025 and sell it today you would earn a total of 122,996 from holding Seaboard or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
McCormick Company Incorporated vs. Seaboard
Performance |
| Timeline |
| McCormick Company |
| Seaboard |
McCormick Company and Seaboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McCormick Company and Seaboard
The main advantage of trading using opposite McCormick Company and Seaboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McCormick Company position performs unexpectedly, Seaboard 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 Seaboard will offset losses from the drop in Seaboard's long position.| McCormick Company vs. ConAgra Foods | McCormick Company vs. Campbells Co | McCormick Company vs. Kellanova | McCormick Company 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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