Correlation Between Sprouts Farmers and Campbells
Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers and Campbells 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 Sprouts Farmers and Campbells into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprouts Farmers Market and Campbells Co, you can compare the effects of market volatilities on Sprouts Farmers and Campbells 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 Sprouts Farmers with a short position of Campbells. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Campbells.
Diversification Opportunities for Sprouts Farmers and Campbells
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sprouts and Campbells is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market and Campbells Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbells and Sprouts Farmers 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 Sprouts Farmers Market are associated (or correlated) with Campbells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbells has no effect on the direction of Sprouts Farmers i.e., Sprouts Farmers and Campbells go up and down completely randomly.
Pair Corralation between Sprouts Farmers and Campbells
Considering the 90-day investment horizon Sprouts Farmers Market is expected to under-perform the Campbells. In addition to that, Sprouts Farmers is 2.06 times more volatile than Campbells Co. It trades about -0.21 of its total potential returns per unit of risk. Campbells Co is currently generating about -0.01 per unit of volatility. If you would invest 3,195 in Campbells Co on August 18, 2025 and sell it today you would lose (66.00) from holding Campbells Co or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprouts Farmers Market vs. Campbells Co
Performance |
| Timeline |
| Sprouts Farmers Market |
| Campbells |
Sprouts Farmers and Campbells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprouts Farmers and Campbells
The main advantage of trading using opposite Sprouts Farmers and Campbells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprouts Farmers position performs unexpectedly, Campbells 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 Campbells will offset losses from the drop in Campbells' long position.| Sprouts Farmers vs. Albertsons Companies | Sprouts Farmers vs. ConAgra Foods | Sprouts Farmers vs. Smithfield Foods, Common | Sprouts Farmers vs. Campbells Co |
| Campbells vs. ConAgra Foods | Campbells vs. Pilgrims Pride Corp | Campbells vs. Lamb Weston Holdings | Campbells vs. Ingredion Incorporated |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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