Correlation Between Kellanova and UGI
Can any of the company-specific risk be diversified away by investing in both Kellanova and UGI 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 UGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and UGI Corporation, you can compare the effects of market volatilities on Kellanova and UGI 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 UGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and UGI.
Diversification Opportunities for Kellanova and UGI
Very weak diversification
The 3 months correlation between Kellanova and UGI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and UGI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGI Corporation 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 UGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGI Corporation has no effect on the direction of Kellanova i.e., Kellanova and UGI go up and down completely randomly.
Pair Corralation between Kellanova and UGI
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.67 times more return on investment than UGI. However, Kellanova is 1.5 times less risky than UGI. It trades about 0.05 of its potential returns per unit of risk. UGI Corporation is currently generating about 0.0 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 | 100.0% |
| Values | Daily Returns |
Kellanova vs. UGI Corp.
Performance |
| Timeline |
| Kellanova |
| UGI Corporation |
Kellanova and UGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and UGI
The main advantage of trading using opposite Kellanova and UGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, UGI 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 UGI will offset losses from the drop in UGI's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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