Correlation Between Danone SA and VEGANO FOODS

Can any of the company-specific risk be diversified away by investing in both Danone SA and VEGANO 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 Danone SA and VEGANO FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Danone SA and VEGANO FOODS INC, you can compare the effects of market volatilities on Danone SA and VEGANO 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 Danone SA with a short position of VEGANO FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danone SA and VEGANO FOODS.

Diversification Opportunities for Danone SA and VEGANO FOODS

0.0

Correlation Coefficient

Danone SA  VEGANO FOODS

Pay attention - limited upside

The 3 months correlation between Danone and VEGANO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Danone SA and VEGANO FOODS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEGANO FOODS INC and Danone SA 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 Danone SA are associated (or correlated) with VEGANO FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEGANO FOODS INC has no effect on the direction of Danone SA i.e., Danone SA and VEGANO FOODS go up and down completely randomly.

Pair Corralation between Danone SA and VEGANO FOODS

If you would invest  3.00  in VEGANO FOODS INC on April 20, 2025 and sell it today you would earn a total of  0.00  from holding VEGANO FOODS INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Danone SA  vs.  VEGANO FOODS INC

Danone SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Danone SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Danone SA is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

VEGANO FOODS INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days VEGANO FOODS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, VEGANO FOODS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Danone SA and VEGANO FOODS

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

The idea behind Danone SA and VEGANO FOODS INC 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.