Correlation Between Village Super and Treehouse Foods
Can any of the company-specific risk be diversified away by investing in both Village Super and Treehouse Foods 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 Village Super and Treehouse Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Super Market and Treehouse Foods, you can compare the effects of market volatilities on Village Super and Treehouse Foods 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 Village Super with a short position of Treehouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and Treehouse Foods.
Diversification Opportunities for Village Super and Treehouse Foods
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Village and Treehouse is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and Treehouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treehouse Foods and Village Super 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 Village Super Market are associated (or correlated) with Treehouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treehouse Foods has no effect on the direction of Village Super i.e., Village Super and Treehouse Foods go up and down completely randomly.
Pair Corralation between Village Super and Treehouse Foods
Assuming the 90 days horizon Village Super Market is expected to under-perform the Treehouse Foods. But the stock apears to be less risky and, when comparing its historical volatility, Village Super Market is 2.14 times less risky than Treehouse Foods. The stock trades about -0.01 of its potential returns per unit of risk. The Treehouse Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Treehouse Foods on August 18, 2025 and sell it today you would earn a total of 559.00 from holding Treehouse Foods or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Village Super Market vs. Treehouse Foods
Performance |
| Timeline |
| Village Super Market |
| Treehouse Foods |
Village Super and Treehouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and Treehouse Foods
The main advantage of trading using opposite Village Super and Treehouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, Treehouse Foods 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 Treehouse Foods will offset losses from the drop in Treehouse Foods' long position.| Village Super vs. Dingdong Limited ADR | Village Super vs. Oatly Group AB | Village Super vs. Helen of Troy | Village Super vs. QuantaSing Group Limited |
| Treehouse Foods vs. Utz Brands | Treehouse Foods vs. Herbalife Nutrition | Treehouse Foods vs. Seneca Foods Corp | Treehouse Foods vs. Natural Grocers by |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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