Correlation Between Kellogg and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Kellogg and Apyx Medical 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 Kellogg and Apyx Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellogg Company and Apyx Medical Corp, you can compare the effects of market volatilities on Kellogg and Apyx Medical 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 Kellogg with a short position of Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellogg and Apyx Medical.
Diversification Opportunities for Kellogg and Apyx Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kellogg and Apyx is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kellogg Company and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical Corp and Kellogg 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 Kellogg Company are associated (or correlated) with Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of Kellogg i.e., Kellogg and Apyx Medical go up and down completely randomly.
Pair Corralation between Kellogg and Apyx Medical
Assuming the 90 days horizon Kellogg is expected to generate 3.48 times less return on investment than Apyx Medical. But when comparing it to its historical volatility, Kellogg Company is 10.79 times less risky than Apyx Medical. It trades about 0.21 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 118.00 in Apyx Medical Corp on October 19, 2024 and sell it today you would earn a total of 11.00 from holding Apyx Medical Corp or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellogg Company vs. Apyx Medical Corp
Performance |
| Timeline |
| Kellogg Company |
| Apyx Medical Corp |
Kellogg and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellogg and Apyx Medical
The main advantage of trading using opposite Kellogg and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellogg position performs unexpectedly, Apyx Medical 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Kellogg vs. Elmos Semiconductor SE | Kellogg vs. Ribbon Communications | Kellogg vs. TOREX SEMICONDUCTOR LTD | Kellogg vs. TELECOM ITALIA |
| Apyx Medical vs. USWE SPORTS AB | Apyx Medical vs. PLAY2CHILL SA ZY | Apyx Medical vs. Pure Storage | Apyx Medical vs. NTT DATA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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