Correlation Between CarsalesCom and KRAFT
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By analyzing existing cross correlation between CarsalesCom Ltd ADR and KRAFT FOODS GROUP, you can compare the effects of market volatilities on CarsalesCom and KRAFT 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 CarsalesCom with a short position of KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarsalesCom and KRAFT.
Diversification Opportunities for CarsalesCom and KRAFT
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CarsalesCom and KRAFT is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom Ltd ADR and KRAFT FOODS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT FOODS GROUP and CarsalesCom 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 CarsalesCom Ltd ADR are associated (or correlated) with KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT FOODS GROUP has no effect on the direction of CarsalesCom i.e., CarsalesCom and KRAFT go up and down completely randomly.
Pair Corralation between CarsalesCom and KRAFT
Assuming the 90 days horizon CarsalesCom Ltd ADR is expected to generate 3.91 times more return on investment than KRAFT. However, CarsalesCom is 3.91 times more volatile than KRAFT FOODS GROUP. It trades about 0.23 of its potential returns per unit of risk. KRAFT FOODS GROUP is currently generating about 0.0 per unit of risk. If you would invest 4,840 in CarsalesCom Ltd ADR on September 4, 2024 and sell it today you would earn a total of 567.00 from holding CarsalesCom Ltd ADR or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
CarsalesCom Ltd ADR vs. KRAFT FOODS GROUP
Performance |
| Timeline |
| CarsalesCom ADR |
| KRAFT FOODS GROUP |
CarsalesCom and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarsalesCom and KRAFT
The main advantage of trading using opposite CarsalesCom and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarsalesCom position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| CarsalesCom vs. Quizam Media | CarsalesCom vs. DGTL Holdings | CarsalesCom vs. Tinybeans Group Limited | CarsalesCom vs. Sabio Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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