Correlation Between Krispy Kreme and Missfresh
Can any of the company-specific risk be diversified away by investing in both Krispy Kreme and Missfresh 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 Krispy Kreme and Missfresh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krispy Kreme and Missfresh Ltd ADR, you can compare the effects of market volatilities on Krispy Kreme and Missfresh 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 Krispy Kreme with a short position of Missfresh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krispy Kreme and Missfresh.
Diversification Opportunities for Krispy Kreme and Missfresh
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Krispy and Missfresh is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Krispy Kreme and Missfresh Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Missfresh ADR and Krispy Kreme 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 Krispy Kreme are associated (or correlated) with Missfresh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Missfresh ADR has no effect on the direction of Krispy Kreme i.e., Krispy Kreme and Missfresh go up and down completely randomly.
Pair Corralation between Krispy Kreme and Missfresh
If you would invest 48.00 in Missfresh Ltd ADR on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Missfresh Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Krispy Kreme vs. Missfresh Ltd ADR
Performance |
| Timeline |
| Krispy Kreme |
| Missfresh ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Krispy Kreme and Missfresh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krispy Kreme and Missfresh
The main advantage of trading using opposite Krispy Kreme and Missfresh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krispy Kreme position performs unexpectedly, Missfresh 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 Missfresh will offset losses from the drop in Missfresh's long position.| Krispy Kreme vs. Sendas Distribuidora SA | Krispy Kreme vs. Natural Grocers by | Krispy Kreme vs. Sprouts Farmers Market | Krispy Kreme vs. Albertsons Companies |
| Missfresh vs. Natural Grocers by | Missfresh vs. Ingles Markets Incorporated | Missfresh vs. Krispy Kreme | Missfresh vs. Grocery Outlet Holding |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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