Correlation Between CAL MAINE and VEGANO FOODS

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

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

Diversification Opportunities for CAL MAINE and VEGANO FOODS

0.0

Correlation Coefficient

CAL MAINE  VEGANO FOODS

Pay attention - limited upside

The 3 months correlation between CAL and VEGANO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAL MAINE FOODS 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 CAL MAINE 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 CAL MAINE FOODS 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 CAL MAINE i.e., CAL MAINE and VEGANO FOODS go up and down completely randomly.

Pair Corralation between CAL MAINE and VEGANO FOODS

If you would invest  7,829  in CAL MAINE FOODS on April 24, 2025 and sell it today you would earn a total of  1,189  from holding CAL MAINE FOODS or generate 15.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CAL MAINE FOODS  vs.  VEGANO FOODS INC

CAL MAINE FOODS

Risk-Adjusted Performance

OK

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

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CAL MAINE and VEGANO FOODS

The main advantage of trading using opposite CAL MAINE and VEGANO FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAL MAINE 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 CAL MAINE FOODS 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.