Correlation Between Integral and WK Kellogg
Can any of the company-specific risk be diversified away by investing in both Integral and WK Kellogg 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 Integral and WK Kellogg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and WK Kellogg Co, you can compare the effects of market volatilities on Integral and WK Kellogg 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 Integral with a short position of WK Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and WK Kellogg.
Diversification Opportunities for Integral and WK Kellogg
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integral and KLG is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and WK Kellogg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WK Kellogg and Integral 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 Integral Ad Science are associated (or correlated) with WK Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WK Kellogg has no effect on the direction of Integral i.e., Integral and WK Kellogg go up and down completely randomly.
Pair Corralation between Integral and WK Kellogg
Considering the 90-day investment horizon Integral is expected to generate 6.0 times less return on investment than WK Kellogg. But when comparing it to its historical volatility, Integral Ad Science is 1.11 times less risky than WK Kellogg. It trades about 0.0 of its potential returns per unit of risk. WK Kellogg Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,702 in WK Kellogg Co on October 26, 2024 and sell it today you would lose (14.00) from holding WK Kellogg Co or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. WK Kellogg Co
Performance |
| Timeline |
| Integral Ad Science |
| WK Kellogg |
Integral and WK Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and WK Kellogg
The main advantage of trading using opposite Integral and WK Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, WK Kellogg 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 WK Kellogg will offset losses from the drop in WK Kellogg's long position.The idea behind Integral Ad Science and WK Kellogg Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| WK Kellogg vs. Tandy Leather Factory | WK Kellogg vs. SLR Investment Corp | WK Kellogg vs. Fidus Investment Corp | WK Kellogg vs. NorthWestern |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |