Correlation Between Kellanova and Consumer Staples
Can any of the company-specific risk be diversified away by investing in both Kellanova and Consumer Staples 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 Consumer Staples into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Consumer Staples Portfolio, you can compare the effects of market volatilities on Kellanova and Consumer Staples 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 Consumer Staples. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Consumer Staples.
Diversification Opportunities for Kellanova and Consumer Staples
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kellanova and Consumer is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Consumer Staples Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Staples Por 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 Consumer Staples. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Staples Por has no effect on the direction of Kellanova i.e., Kellanova and Consumer Staples go up and down completely randomly.
Pair Corralation between Kellanova and Consumer Staples
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.29 times more return on investment than Consumer Staples. However, Kellanova is 3.4 times less risky than Consumer Staples. It trades about 0.13 of its potential returns per unit of risk. Consumer Staples Portfolio is currently generating about 0.01 per unit of risk. If you would invest 8,060 in Kellanova on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Kellanova or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Consumer Staples Portfolio
Performance |
| Timeline |
| Kellanova |
| Consumer Staples Por |
Kellanova and Consumer Staples Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Consumer Staples
The main advantage of trading using opposite Kellanova and Consumer Staples positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Consumer Staples 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 Consumer Staples will offset losses from the drop in Consumer Staples' long position.| Kellanova vs. Bellring Brands LLC | Kellanova vs. Ingredion Incorporated | Kellanova vs. Nomad Foods | Kellanova vs. Simply Good Foods |
| Consumer Staples vs. Kellanova | Consumer Staples vs. Bunge Limited | Consumer Staples vs. BJs Wholesale Club | Consumer Staples vs. Colgate Palmolive |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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