Correlation Between Treehouse Foods and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both Treehouse Foods and Inter Parfums 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 Treehouse Foods and Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treehouse Foods and Inter Parfums, you can compare the effects of market volatilities on Treehouse Foods and Inter Parfums 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 Treehouse Foods with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treehouse Foods and Inter Parfums.
Diversification Opportunities for Treehouse Foods and Inter Parfums
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Treehouse and Inter is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Treehouse Foods and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and Treehouse 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 Treehouse Foods are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Treehouse Foods i.e., Treehouse Foods and Inter Parfums go up and down completely randomly.
Pair Corralation between Treehouse Foods and Inter Parfums
Considering the 90-day investment horizon Treehouse Foods is expected to under-perform the Inter Parfums. In addition to that, Treehouse Foods is 1.86 times more volatile than Inter Parfums. It trades about -0.08 of its total potential returns per unit of risk. Inter Parfums is currently generating about -0.15 per unit of volatility. If you would invest 13,545 in Inter Parfums on May 30, 2025 and sell it today you would lose (2,142) from holding Inter Parfums or give up 15.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Treehouse Foods vs. Inter Parfums
Performance |
| Timeline |
| Treehouse Foods |
| Inter Parfums |
Treehouse Foods and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treehouse Foods and Inter Parfums
The main advantage of trading using opposite Treehouse Foods and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treehouse Foods position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Treehouse Foods vs. Bellring Brands LLC | Treehouse Foods vs. Flowers Foods | Treehouse Foods vs. The Hain Celestial | Treehouse Foods vs. J J Snack |
| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |