Correlation Between TRAINLINE PLC and Kroger
Can any of the company-specific risk be diversified away by investing in both TRAINLINE PLC and Kroger 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 TRAINLINE PLC and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRAINLINE PLC LS and The Kroger Co, you can compare the effects of market volatilities on TRAINLINE PLC and Kroger 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 TRAINLINE PLC with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAINLINE PLC and Kroger.
Diversification Opportunities for TRAINLINE PLC and Kroger
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TRAINLINE and Kroger is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TRAINLINE PLC LS and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger and TRAINLINE PLC 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 TRAINLINE PLC LS are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of TRAINLINE PLC i.e., TRAINLINE PLC and Kroger go up and down completely randomly.
Pair Corralation between TRAINLINE PLC and Kroger
Assuming the 90 days trading horizon TRAINLINE PLC LS is expected to under-perform the Kroger. In addition to that, TRAINLINE PLC is 2.08 times more volatile than The Kroger Co. It trades about -0.27 of its total potential returns per unit of risk. The Kroger Co is currently generating about -0.21 per unit of volatility. If you would invest 5,908 in The Kroger Co on October 24, 2024 and sell it today you would lose (309.00) from holding The Kroger Co or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRAINLINE PLC LS vs. The Kroger Co
Performance |
| Timeline |
| TRAINLINE PLC LS |
| The Kroger |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
TRAINLINE PLC and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAINLINE PLC and Kroger
The main advantage of trading using opposite TRAINLINE PLC and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAINLINE PLC position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| TRAINLINE PLC vs. AEON STORES | TRAINLINE PLC vs. GAMESTOP | TRAINLINE PLC vs. Scientific Games | TRAINLINE PLC vs. GigaMedia |
| Kroger vs. Costco Wholesale Corp | Kroger vs. CanSino Biologics | Kroger vs. BJs Wholesale Club | Kroger vs. Apollo Investment Corp |
Check out your portfolio center.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |