Correlation Between Vital Farms and Newell Brands
Can any of the company-specific risk be diversified away by investing in both Vital Farms and Newell Brands 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 Vital Farms and Newell Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vital Farms and Newell Brands, you can compare the effects of market volatilities on Vital Farms and Newell Brands 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 Vital Farms with a short position of Newell Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vital Farms and Newell Brands.
Diversification Opportunities for Vital Farms and Newell Brands
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vital and Newell is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vital Farms and Newell Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands and Vital Farms 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 Vital Farms are associated (or correlated) with Newell Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands has no effect on the direction of Vital Farms i.e., Vital Farms and Newell Brands go up and down completely randomly.
Pair Corralation between Vital Farms and Newell Brands
Given the investment horizon of 90 days Vital Farms is expected to generate 0.81 times more return on investment than Newell Brands. However, Vital Farms is 1.23 times less risky than Newell Brands. It trades about -0.15 of its potential returns per unit of risk. Newell Brands is currently generating about -0.12 per unit of risk. If you would invest 4,856 in Vital Farms on September 12, 2025 and sell it today you would lose (1,457) from holding Vital Farms or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vital Farms vs. Newell Brands
Performance |
| Timeline |
| Vital Farms |
| Newell Brands |
Vital Farms and Newell Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vital Farms and Newell Brands
The main advantage of trading using opposite Vital Farms and Newell Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vital Farms position performs unexpectedly, Newell Brands 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 Newell Brands will offset losses from the drop in Newell Brands' long position.| Vital Farms vs. Fresh Del Monte | Vital Farms vs. Dole PLC | Vital Farms vs. Tootsie Roll Industries | Vital Farms vs. Ingles Markets Incorporated |
| Newell Brands vs. Spectrum Brands Holdings | Newell Brands vs. Coursera | Newell Brands vs. Ingles Markets Incorporated | Newell Brands vs. Phoenix Education Partners, |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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