Correlation Between Healthier Choices and Kesko Oyj
Can any of the company-specific risk be diversified away by investing in both Healthier Choices and Kesko Oyj 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 Healthier Choices and Kesko Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthier Choices Management and Kesko Oyj ADR, you can compare the effects of market volatilities on Healthier Choices and Kesko Oyj 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 Healthier Choices with a short position of Kesko Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthier Choices and Kesko Oyj.
Diversification Opportunities for Healthier Choices and Kesko Oyj
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Healthier and Kesko is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Healthier Choices Management and Kesko Oyj ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesko Oyj ADR and Healthier Choices 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 Healthier Choices Management are associated (or correlated) with Kesko Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesko Oyj ADR has no effect on the direction of Healthier Choices i.e., Healthier Choices and Kesko Oyj go up and down completely randomly.
Pair Corralation between Healthier Choices and Kesko Oyj
Given the investment horizon of 90 days Healthier Choices Management is expected to generate 149.49 times more return on investment than Kesko Oyj. However, Healthier Choices is 149.49 times more volatile than Kesko Oyj ADR. It trades about 0.2 of its potential returns per unit of risk. Kesko Oyj ADR is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Healthier Choices Management on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Healthier Choices Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Healthier Choices Management vs. Kesko Oyj ADR
Performance |
| Timeline |
| Healthier Choices |
| Kesko Oyj ADR |
Healthier Choices and Kesko Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthier Choices and Kesko Oyj
The main advantage of trading using opposite Healthier Choices and Kesko Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthier Choices position performs unexpectedly, Kesko Oyj 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 Kesko Oyj will offset losses from the drop in Kesko Oyj's long position.| Healthier Choices vs. Albertsons Companies | Healthier Choices vs. Sprouts Farmers Market | Healthier Choices vs. Krispy Kreme | Healthier Choices vs. Grocery Outlet Holding |
| Kesko Oyj vs. Carrefour SA PK | Kesko Oyj vs. J Sainsbury plc | Kesko Oyj vs. Om Holdings International | Kesko Oyj vs. J Sainsbury PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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