Correlation Between Kellanova and General Mills
Can any of the company-specific risk be diversified away by investing in both Kellanova and General Mills 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 General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and General Mills, you can compare the effects of market volatilities on Kellanova and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and General Mills.
Diversification Opportunities for Kellanova and General Mills
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kellanova and General is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Kellanova i.e., Kellanova and General Mills go up and down completely randomly.
Pair Corralation between Kellanova and General Mills
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.18 times more return on investment than General Mills. However, Kellanova is 5.44 times less risky than General Mills. It trades about 0.13 of its potential returns per unit of risk. General Mills is currently generating about -0.14 per unit of risk. If you would invest 8,060 in Kellanova on August 28, 2024 and sell it today you would earn a total of 51.00 from holding Kellanova or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. General Mills
Performance |
| Timeline |
| Kellanova |
| General Mills |
Kellanova and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and General Mills
The main advantage of trading using opposite Kellanova and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| Kellanova vs. Bellring Brands LLC | Kellanova vs. Ingredion Incorporated | Kellanova vs. Nomad Foods | Kellanova vs. Simply Good Foods |
| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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