Correlation Between Cboe UK and Kroger
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By analyzing existing cross correlation between Cboe UK Consumer and Kroger Co, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Kroger.
Diversification Opportunities for Cboe UK and Kroger
Very poor diversification
The 3 months correlation between Cboe and Kroger is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger and Cboe UK 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 Cboe UK Consumer 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 Kroger has no effect on the direction of Cboe UK i.e., Cboe UK and Kroger go up and down completely randomly.
Pair Corralation between Cboe UK and Kroger
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.84 times more return on investment than Kroger. However, Cboe UK Consumer is 1.19 times less risky than Kroger. It trades about 0.38 of its potential returns per unit of risk. Kroger Co is currently generating about 0.15 per unit of risk. If you would invest 2,948,589 in Cboe UK Consumer on August 24, 2024 and sell it today you would earn a total of 274,127 from holding Cboe UK Consumer or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Kroger Co
Performance |
| Timeline |
Cboe UK and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Kroger Co
Pair trading matchups for Kroger
Pair Trading with Cboe UK and Kroger
The main advantage of trading using opposite Cboe UK and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. JLEN Environmental Assets | Cboe UK vs. Silvercorp Metals | Cboe UK vs. Eastinco Mining Exploration | Cboe UK vs. Dentsply Sirona |
| Kroger vs. Tyson Foods Cl | Kroger vs. Science in Sport | Kroger vs. Bisichi Mining PLC | Kroger vs. Lundin Mining 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 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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