Correlation Between Performance Food and DATAWALK B

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

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

Diversification Opportunities for Performance Food and DATAWALK B

0.38

Correlation Coefficient

Performance Food  DATAWALK B

Weak diversification

The 3 months correlation between Performance and DATAWALK is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and DATAWALK B H ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAWALK B H and Performance Food 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 Performance Food Group are associated (or correlated) with DATAWALK B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAWALK B H has no effect on the direction of Performance Food i.e., Performance Food and DATAWALK B go up and down completely randomly.

Pair Corralation between Performance Food and DATAWALK B

Assuming the 90 days trading horizon Performance Food is expected to generate 1.94 times less return on investment than DATAWALK B. But when comparing it to its historical volatility, Performance Food Group is 2.56 times less risky than DATAWALK B. It trades about 0.16 of its potential returns per unit of risk. DATAWALK B H ZY is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,906  in DATAWALK B H ZY on April 24, 2025 and sell it today you would earn a total of  654.00  from holding DATAWALK B H ZY or generate 34.31% return on investment over 90 days.

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

Performance Food Group  vs.  DATAWALK B H ZY

Performance Food

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Food Group are ranked lower than 12 (%) 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.

DATAWALK B H

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DATAWALK B H ZY are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, DATAWALK B reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Performance Food and DATAWALK B

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

The idea behind Performance Food Group and DATAWALK B H ZY 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.