Correlation Between LIFEWAY FOODS and Caseys General

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

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

Diversification Opportunities for LIFEWAY FOODS and Caseys General

0.43

Correlation Coefficient

LIFEWAY FOODS  Caseys General

Very weak diversification

The 3 months correlation between LIFEWAY and Caseys is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and LIFEWAY FOODS 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 LIFEWAY FOODS are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of LIFEWAY FOODS i.e., LIFEWAY FOODS and Caseys General go up and down completely randomly.

Pair Corralation between LIFEWAY FOODS and Caseys General

Assuming the 90 days trading horizon LIFEWAY FOODS is expected to generate 11.61 times less return on investment than Caseys General. But when comparing it to its historical volatility, LIFEWAY FOODS is 1.04 times less risky than Caseys General. It trades about 0.01 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  38,117  in Caseys General Stores on April 13, 2025 and sell it today you would earn a total of  5,883  from holding Caseys General Stores or generate 15.43% return on investment over 90 days.

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

LIFEWAY FOODS  vs.  Caseys General Stores

LIFEWAY FOODS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LIFEWAY FOODS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LIFEWAY FOODS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Caseys General Stores

Risk-Adjusted Performance

Modest

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

Pair Trading with LIFEWAY FOODS and Caseys General

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

The idea behind LIFEWAY FOODS and Caseys General Stores 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.