Correlation Between Kellanova and Emmi AG
Can any of the company-specific risk be diversified away by investing in both Kellanova and Emmi AG 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 Kellanova and Emmi AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Emmi AG, you can compare the effects of market volatilities on Kellanova and Emmi AG 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 Kellanova with a short position of Emmi AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Emmi AG.
Diversification Opportunities for Kellanova and Emmi AG
Very good diversification
The 3 months correlation between Kellanova and Emmi is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Emmi AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emmi AG and Kellanova 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 Kellanova are associated (or correlated) with Emmi AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emmi AG has no effect on the direction of Kellanova i.e., Kellanova and Emmi AG go up and down completely randomly.
Pair Corralation between Kellanova and Emmi AG
If you would invest 8,096 in Kellanova on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Kellanova or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Emmi AG
Performance |
| Timeline |
| Kellanova |
| Emmi AG |
Kellanova and Emmi AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Emmi AG
The main advantage of trading using opposite Kellanova and Emmi AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Emmi AG 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 Emmi AG will offset losses from the drop in Emmi AG's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Emmi AG vs. Artisan Consumer Goods | Emmi AG vs. Avi Ltd ADR | Emmi AG vs. Aryzta AG PK | Emmi AG vs. The A2 Milk |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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