Correlation Between Healthy Choice and Kellanova
Can any of the company-specific risk be diversified away by investing in both Healthy Choice 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 Healthy Choice and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthy Choice Wellness and Kellanova, you can compare the effects of market volatilities on Healthy Choice 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 Healthy Choice with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthy Choice and Kellanova.
Diversification Opportunities for Healthy Choice and Kellanova
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Healthy and Kellanova is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Healthy Choice Wellness and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Healthy Choice 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 Healthy Choice Wellness 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 Healthy Choice i.e., Healthy Choice and Kellanova go up and down completely randomly.
Pair Corralation between Healthy Choice and Kellanova
Given the investment horizon of 90 days Healthy Choice Wellness is expected to generate 25.35 times more return on investment than Kellanova. However, Healthy Choice is 25.35 times more volatile than Kellanova. It trades about 0.02 of its potential returns per unit of risk. Kellanova is currently generating about 0.18 per unit of risk. If you would invest 165.00 in Healthy Choice Wellness on September 2, 2024 and sell it today you would lose (1.00) from holding Healthy Choice Wellness or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthy Choice Wellness vs. Kellanova
Performance |
| Timeline |
| Healthy Choice Wellness |
| Kellanova |
Healthy Choice and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthy Choice and Kellanova
The main advantage of trading using opposite Healthy Choice and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthy Choice 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.| Healthy Choice vs. Highway Holdings Limited | Healthy Choice vs. Pintec Technology Holdings | Healthy Choice vs. Apogee Enterprises | Healthy Choice vs. Consol Energy |
| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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