Correlation Between PLATO GOLD and Kroger
Can any of the company-specific risk be diversified away by investing in both PLATO GOLD 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 PLATO GOLD and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLATO GOLD P and The Kroger Co, you can compare the effects of market volatilities on PLATO GOLD 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 PLATO GOLD with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLATO GOLD and Kroger.
Diversification Opportunities for PLATO GOLD and Kroger
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLATO and Kroger is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PLATO GOLD P and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger and PLATO GOLD 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 PLATO GOLD P 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 PLATO GOLD i.e., PLATO GOLD and Kroger go up and down completely randomly.
Pair Corralation between PLATO GOLD and Kroger
Assuming the 90 days horizon PLATO GOLD P is expected to generate 23.58 times more return on investment than Kroger. However, PLATO GOLD is 23.58 times more volatile than The Kroger Co. It trades about 0.21 of its potential returns per unit of risk. The Kroger Co is currently generating about 0.07 per unit of risk. If you would invest 0.65 in PLATO GOLD P on August 25, 2024 and sell it today you would earn a total of 0.15 from holding PLATO GOLD P or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLATO GOLD P vs. The Kroger Co
Performance |
| Timeline |
| PLATO GOLD P |
| The Kroger |
PLATO GOLD and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLATO GOLD and Kroger
The main advantage of trading using opposite PLATO GOLD and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLATO GOLD 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.| PLATO GOLD vs. Charter Communications | PLATO GOLD vs. MI Homes | PLATO GOLD vs. INTERSHOP Communications Aktiengesellschaft | PLATO GOLD vs. CENTURIA OFFICE REIT |
| Kroger vs. Games Workshop Group | Kroger vs. Titan Machinery | Kroger vs. TROPHY GAMES DEV | Kroger vs. Federal Agricultural Mortgage |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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