Correlation Between Kraft Heinz and Calbee
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Calbee 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 Calbee 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 Calbee Inc, you can compare the effects of market volatilities on Kraft Heinz and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Calbee.
Diversification Opportunities for Kraft Heinz and Calbee
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kraft and Calbee is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Calbee go up and down completely randomly.
Pair Corralation between Kraft Heinz and Calbee
Assuming the 90 days trading horizon Kraft Heinz Co is expected to under-perform the Calbee. In addition to that, Kraft Heinz is 1.94 times more volatile than Calbee Inc. It trades about -0.06 of its total potential returns per unit of risk. Calbee Inc is currently generating about -0.05 per unit of volatility. If you would invest 1,714 in Calbee Inc on January 5, 2025 and sell it today you would lose (24.00) from holding Calbee Inc or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Calbee Inc
Performance |
| Timeline |
| Kraft Heinz |
| Calbee Inc |
Kraft Heinz and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Calbee
The main advantage of trading using opposite Kraft Heinz and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| Kraft Heinz vs. MAVEN WIRELESS SWEDEN | Kraft Heinz vs. Ebro Foods SA | Kraft Heinz vs. Luckin Coffee | Kraft Heinz vs. VARIOUS EATERIES LS |
| Calbee vs. The Peoples Insurance | Calbee vs. 24SEVENOFFICE GROUP AB | Calbee vs. INVITATION HOMES DL | Calbee vs. Aedas Homes SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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