Correlation Between Swift Foods and Dizon Copper

Can any of the company-specific risk be diversified away by investing in both Swift Foods and Dizon Copper 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 Swift Foods and Dizon Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swift Foods and Dizon Copper Silver, you can compare the effects of market volatilities on Swift Foods and Dizon Copper 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 Swift Foods with a short position of Dizon Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Foods and Dizon Copper.

Diversification Opportunities for Swift Foods and Dizon Copper

-0.14

Correlation Coefficient

Swift Foods  Dizon Copper

Good diversification

The 3 months correlation between Swift and Dizon is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Swift Foods and Dizon Copper Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dizon Copper Silver and Swift 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 Swift Foods are associated (or correlated) with Dizon Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dizon Copper Silver has no effect on the direction of Swift Foods i.e., Swift Foods and Dizon Copper go up and down completely randomly.

Pair Corralation between Swift Foods and Dizon Copper

Assuming the 90 days trading horizon Swift Foods is expected to generate 1.33 times more return on investment than Dizon Copper. However, Swift Foods is 1.33 times more volatile than Dizon Copper Silver. It trades about 0.07 of its potential returns per unit of risk. Dizon Copper Silver is currently generating about 0.04 per unit of risk. If you would invest  4.90  in Swift Foods on April 23, 2025 and sell it today you would earn a total of  0.50  from holding Swift Foods or generate 10.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.86%
Values	Daily Returns

Swift Foods  vs.  Dizon Copper Silver

Swift Foods

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Swift Foods are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Swift Foods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dizon Copper Silver

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dizon Copper Silver are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Dizon Copper exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swift Foods and Dizon Copper

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

The idea behind Swift Foods and Dizon Copper Silver 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.