Correlation Between Kraft Heinz and Else Nutrition
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Else Nutrition 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 Kraft Heinz and Else Nutrition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Else Nutrition Holdings, you can compare the effects of market volatilities on Kraft Heinz and Else Nutrition 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 Kraft Heinz with a short position of Else Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Else Nutrition.
Diversification Opportunities for Kraft Heinz and Else Nutrition
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kraft and Else is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings and Kraft Heinz 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 Kraft Heinz Co are associated (or correlated) with Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Else Nutrition go up and down completely randomly.
Pair Corralation between Kraft Heinz and Else Nutrition
Considering the 90-day investment horizon Kraft Heinz Co is expected to generate 0.14 times more return on investment than Else Nutrition. However, Kraft Heinz Co is 6.9 times less risky than Else Nutrition. It trades about -0.04 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about -0.18 per unit of risk. If you would invest 3,438 in Kraft Heinz Co on September 2, 2024 and sell it today you would lose (241.00) from holding Kraft Heinz Co or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Else Nutrition Holdings
Performance |
| Timeline |
| Kraft Heinz |
| Else Nutrition Holdings |
Kraft Heinz and Else Nutrition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Else Nutrition
The main advantage of trading using opposite Kraft Heinz and Else Nutrition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Else Nutrition 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 Else Nutrition will offset losses from the drop in Else Nutrition's long position.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| Else Nutrition vs. Stryve Foods | Else Nutrition vs. Better Choice | Else Nutrition vs. Laird Superfood | Else Nutrition vs. Arcadia Biosciences |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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