Correlation Between Khiron Life and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both Khiron Life and CONAGRA 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 Khiron Life and CONAGRA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and CONAGRA FOODS, you can compare the effects of market volatilities on Khiron Life and CONAGRA 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 Khiron Life with a short position of CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and CONAGRA FOODS.
Diversification Opportunities for Khiron Life and CONAGRA FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and CONAGRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of Khiron Life i.e., Khiron Life and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between Khiron Life and CONAGRA FOODS
Assuming the 90 days trading horizon Khiron Life Sciences is expected to under-perform the CONAGRA FOODS. In addition to that, Khiron Life is 2.59 times more volatile than CONAGRA FOODS. It trades about -0.06 of its total potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.03 per unit of volatility. If you would invest 3,106 in CONAGRA FOODS on October 29, 2024 and sell it today you would lose (639.00) from holding CONAGRA FOODS or give up 20.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Khiron Life Sciences vs. CONAGRA FOODS
Performance |
| Timeline |
| Khiron Life Sciences |
| CONAGRA FOODS |
Khiron Life and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and CONAGRA FOODS
The main advantage of trading using opposite Khiron Life and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, CONAGRA 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| Khiron Life vs. Guidewire Software | Khiron Life vs. Stag Industrial | Khiron Life vs. ARDAGH METAL PACDL 0001 | Khiron Life vs. ASURE SOFTWARE |
| CONAGRA FOODS vs. National Health Investors | CONAGRA FOODS vs. MARKET VECTR RETAIL | CONAGRA FOODS vs. Acadia Healthcare | CONAGRA FOODS vs. EPSILON HEALTHCARE LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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