Correlation Between Kellanova and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Kellanova and Grocery Outlet 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 Grocery Outlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Grocery Outlet Holding, you can compare the effects of market volatilities on Kellanova and Grocery Outlet 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 Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Grocery Outlet.
Diversification Opportunities for Kellanova and Grocery Outlet
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kellanova and Grocery is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding 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 Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of Kellanova i.e., Kellanova and Grocery Outlet go up and down completely randomly.
Pair Corralation between Kellanova and Grocery Outlet
Taking into account the 90-day investment horizon Kellanova is expected to generate 117.71 times less return on investment than Grocery Outlet. But when comparing it to its historical volatility, Kellanova is 16.86 times less risky than Grocery Outlet. It trades about 0.08 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 1,390 in Grocery Outlet Holding on August 31, 2024 and sell it today you would earn a total of 735.00 from holding Grocery Outlet Holding or generate 52.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Grocery Outlet Holding
Performance |
| Timeline |
| Kellanova |
| Grocery Outlet Holding |
Kellanova and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Grocery Outlet
The main advantage of trading using opposite Kellanova and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |