Correlation Between Kellanova and Vanguard Consumer
Can any of the company-specific risk be diversified away by investing in both Kellanova and Vanguard Consumer 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 Vanguard Consumer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Vanguard Sumer Staples, you can compare the effects of market volatilities on Kellanova and Vanguard Consumer 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 Vanguard Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Vanguard Consumer.
Diversification Opportunities for Kellanova and Vanguard Consumer
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kellanova and Vanguard is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Vanguard Sumer Staples in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Sumer Staples 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 Vanguard Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Sumer Staples has no effect on the direction of Kellanova i.e., Kellanova and Vanguard Consumer go up and down completely randomly.
Pair Corralation between Kellanova and Vanguard Consumer
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.36 times more return on investment than Vanguard Consumer. However, Kellanova is 2.75 times less risky than Vanguard Consumer. It trades about 0.35 of its potential returns per unit of risk. Vanguard Sumer Staples is currently generating about -0.13 per unit of risk. If you would invest 8,070 in Kellanova on October 22, 2024 and sell it today you would earn a total of 108.00 from holding Kellanova or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. Vanguard Sumer Staples
Performance |
| Timeline |
| Kellanova |
| Vanguard Sumer Staples |
Kellanova and Vanguard Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and Vanguard Consumer
The main advantage of trading using opposite Kellanova and Vanguard Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Vanguard Consumer 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 Vanguard Consumer will offset losses from the drop in Vanguard Consumer's long position.| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
| Vanguard Consumer vs. Small Cap Equity | Vanguard Consumer vs. Doubleline Core Fixed | Vanguard Consumer vs. Quantitative Longshort Equity | Vanguard Consumer vs. Smallcap World Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |