Correlation Between Koios Beverage and Kellanova
Can any of the company-specific risk be diversified away by investing in both Koios Beverage and Kellanova 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 Koios Beverage and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koios Beverage Corp and Kellanova, you can compare the effects of market volatilities on Koios Beverage and Kellanova 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 Koios Beverage with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koios Beverage and Kellanova.
Diversification Opportunities for Koios Beverage and Kellanova
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koios and Kellanova is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Koios Beverage Corp and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Koios Beverage 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 Koios Beverage Corp are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Koios Beverage i.e., Koios Beverage and Kellanova go up and down completely randomly.
Pair Corralation between Koios Beverage and Kellanova
Assuming the 90 days horizon Koios Beverage Corp is expected to generate 206.9 times more return on investment than Kellanova. However, Koios Beverage is 206.9 times more volatile than Kellanova. It trades about 0.16 of its potential returns per unit of risk. Kellanova is currently generating about 0.07 per unit of risk. If you would invest 2.28 in Koios Beverage Corp on September 13, 2024 and sell it today you would earn a total of 1.72 from holding Koios Beverage Corp or generate 75.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Koios Beverage Corp vs. Kellanova
Performance |
| Timeline |
| Koios Beverage Corp |
| Kellanova |
Koios Beverage and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koios Beverage and Kellanova
The main advantage of trading using opposite Koios Beverage and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koios Beverage position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.| Koios Beverage vs. Branded Legacy | Koios Beverage vs. Flow Beverage Corp | Koios Beverage vs. Torque Lifestyle Brands |
| Kellanova vs. General Mills | Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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