Correlation Between SANOK RUBBER and Performance Food

Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Performance Food 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 SANOK RUBBER and Performance Food into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SANOK RUBBER ZY and Performance Food Group, you can compare the effects of market volatilities on SANOK RUBBER and Performance Food 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 SANOK RUBBER with a short position of Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Performance Food.

Diversification Opportunities for SANOK RUBBER and Performance Food

0.71

Correlation Coefficient

SANOK RUBBER  Performance Food

Poor diversification

The 3 months correlation between SANOK and Performance is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Performance Food go up and down completely randomly.

Pair Corralation between SANOK RUBBER and Performance Food

Assuming the 90 days horizon SANOK RUBBER is expected to generate 1.87 times less return on investment than Performance Food. In addition to that, SANOK RUBBER is 1.07 times more volatile than Performance Food Group. It trades about 0.07 of its total potential returns per unit of risk. Performance Food Group is currently generating about 0.14 per unit of volatility. If you would invest  6,300  in Performance Food Group on April 7, 2025 and sell it today you would earn a total of  1,200  from holding Performance Food Group or generate 19.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SANOK RUBBER ZY  vs.  Performance Food Group

SANOK RUBBER ZY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SANOK RUBBER ZY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SANOK RUBBER may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Performance Food

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Food Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Performance Food unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SANOK RUBBER and Performance Food

The main advantage of trading using opposite SANOK RUBBER and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.

The idea behind SANOK RUBBER ZY and Performance Food Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.