Correlation Between Sendas Distribuidora and Krispy Kreme
Can any of the company-specific risk be diversified away by investing in both Sendas Distribuidora and Krispy Kreme 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 Sendas Distribuidora and Krispy Kreme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sendas Distribuidora SA and Krispy Kreme, you can compare the effects of market volatilities on Sendas Distribuidora and Krispy Kreme 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 Sendas Distribuidora with a short position of Krispy Kreme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sendas Distribuidora and Krispy Kreme.
Diversification Opportunities for Sendas Distribuidora and Krispy Kreme
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sendas and Krispy is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sendas Distribuidora SA and Krispy Kreme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krispy Kreme and Sendas Distribuidora 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 Sendas Distribuidora SA are associated (or correlated) with Krispy Kreme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krispy Kreme has no effect on the direction of Sendas Distribuidora i.e., Sendas Distribuidora and Krispy Kreme go up and down completely randomly.
Pair Corralation between Sendas Distribuidora and Krispy Kreme
Given the investment horizon of 90 days Sendas Distribuidora SA is expected to under-perform the Krispy Kreme. But the stock apears to be less risky and, when comparing its historical volatility, Sendas Distribuidora SA is 1.24 times less risky than Krispy Kreme. The stock trades about -0.09 of its potential returns per unit of risk. The Krispy Kreme is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,285 in Krispy Kreme on August 26, 2024 and sell it today you would lose (170.00) from holding Krispy Kreme or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sendas Distribuidora SA vs. Krispy Kreme
Performance |
| Timeline |
| Sendas Distribuidora |
| Krispy Kreme |
Sendas Distribuidora and Krispy Kreme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sendas Distribuidora and Krispy Kreme
The main advantage of trading using opposite Sendas Distribuidora and Krispy Kreme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sendas Distribuidora position performs unexpectedly, Krispy Kreme 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 Krispy Kreme will offset losses from the drop in Krispy Kreme's long position.| Sendas Distribuidora vs. Hf Foods Group | Sendas Distribuidora vs. Innovative Food Hldg | Sendas Distribuidora vs. Calavo Growers | Sendas Distribuidora vs. The Chefs Warehouse |
| Krispy Kreme vs. Sendas Distribuidora SA | Krispy Kreme vs. Natural Grocers by | Krispy Kreme vs. Sprouts Farmers Market | Krispy Kreme vs. Albertsons Companies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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