Correlation Between Kraft Heinz and Smart For
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Smart For 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 Smart For 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 Smart for Life,, you can compare the effects of market volatilities on Kraft Heinz and Smart For 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 Smart For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Smart For.
Diversification Opportunities for Kraft Heinz and Smart For
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kraft and Smart is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Smart for Life, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart for Life, 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 Smart For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart for Life, has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Smart For go up and down completely randomly.
Pair Corralation between Kraft Heinz and Smart For
If you would invest 3.39 in Smart for Life, on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Smart for Life, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kraft Heinz Co vs. Smart for Life,
Performance |
| Timeline |
| Kraft Heinz |
| Smart for Life, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kraft Heinz and Smart For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Smart For
The main advantage of trading using opposite Kraft Heinz and Smart For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Smart For 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 Smart For will offset losses from the drop in Smart For's long position.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| Smart For vs. Bit Origin | Smart For vs. Better Choice | Smart For vs. Farmmi Inc | Smart For vs. Laird Superfood |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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