Correlation Between Kellanova and Sekisui Chemical
Can any of the company-specific risk be diversified away by investing in both Kellanova and Sekisui Chemical 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 Sekisui Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Sekisui Chemical Co, you can compare the effects of market volatilities on Kellanova and Sekisui Chemical 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 Sekisui Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Sekisui Chemical.
Diversification Opportunities for Kellanova and Sekisui Chemical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kellanova and Sekisui is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Sekisui Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekisui Chemical 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 Sekisui Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekisui Chemical has no effect on the direction of Kellanova i.e., Kellanova and Sekisui Chemical go up and down completely randomly.
Pair Corralation between Kellanova and Sekisui Chemical
Taking into account the 90-day investment horizon Kellanova is expected to generate 1.42 times more return on investment than Sekisui Chemical. However, Kellanova is 1.42 times more volatile than Sekisui Chemical Co. It trades about 0.05 of its potential returns per unit of risk. Sekisui Chemical Co is currently generating about 0.03 per unit of risk. If you would invest 5,975 in Kellanova on November 2, 2024 and sell it today you would earn a total of 2,207 from holding Kellanova or generate 36.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kellanova vs. Sekisui Chemical Co
Performance |
| Timeline |
| Kellanova |
| Sekisui Chemical |
Kellanova and Sekisui Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Sekisui Chemical
The main advantage of trading using opposite Kellanova and Sekisui Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Sekisui Chemical 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 Sekisui Chemical will offset losses from the drop in Sekisui Chemical's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Sekisui Chemical vs. Kyocera | Sekisui Chemical vs. Hitachi Ltd ADR | Sekisui Chemical vs. Itochu Corp ADR | Sekisui Chemical vs. 3M Company |
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 Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets |