Correlation Between Kraft Heinz and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on Kraft Heinz and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Siriuspoint.
Diversification Opportunities for Kraft Heinz and Siriuspoint
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and Siriuspoint is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Siriuspoint go up and down completely randomly.
Pair Corralation between Kraft Heinz and Siriuspoint
Considering the 90-day investment horizon Kraft Heinz Co is expected to under-perform the Siriuspoint. But the stock apears to be less risky and, when comparing its historical volatility, Kraft Heinz Co is 2.24 times less risky than Siriuspoint. The stock trades about -0.34 of its potential returns per unit of risk. The Siriuspoint is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Siriuspoint on August 29, 2024 and sell it today you would earn a total of 184.00 from holding Siriuspoint or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Siriuspoint
Performance |
| Timeline |
| Kraft Heinz |
| Siriuspoint |
Kraft Heinz and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Siriuspoint
The main advantage of trading using opposite Kraft Heinz and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Kraft Heinz vs. Seneca Foods Corp | Kraft Heinz vs. Central Garden Pet | Kraft Heinz vs. Central Garden Pet | Kraft Heinz vs. Lancaster Colony |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Greenlight Capital Re | Siriuspoint vs. RenaissanceRe Holdings | Siriuspoint vs. Renaissancere Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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