Correlation Between Kellanova and Limoneira
Can any of the company-specific risk be diversified away by investing in both Kellanova and Limoneira 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 Limoneira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Limoneira Co, you can compare the effects of market volatilities on Kellanova and Limoneira 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 Limoneira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Limoneira.
Diversification Opportunities for Kellanova and Limoneira
Pay attention - limited upside
The 3 months correlation between Kellanova and Limoneira is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Limoneira Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limoneira 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 Limoneira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limoneira has no effect on the direction of Kellanova i.e., Kellanova and Limoneira go up and down completely randomly.
Pair Corralation between Kellanova and Limoneira
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.09 times more return on investment than Limoneira. However, Kellanova is 11.42 times less risky than Limoneira. It trades about 0.15 of its potential returns per unit of risk. Limoneira Co is currently generating about -0.01 per unit of risk. If you would invest 7,960 in Kellanova on November 2, 2024 and sell it today you would earn a total of 234.00 from holding Kellanova or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Limoneira Co
Performance |
| Timeline |
| Kellanova |
| Limoneira |
Kellanova and Limoneira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Limoneira
The main advantage of trading using opposite Kellanova and Limoneira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Limoneira 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 Limoneira will offset losses from the drop in Limoneira's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Limoneira vs. Dole PLC | Limoneira vs. Alico Inc | Limoneira vs. Adecoagro SA | Limoneira vs. Cal Maine 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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