Correlation Between Kraft Heinz and Dow Jones
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By analyzing existing cross correlation between Kraft Heinz Co and Dow Jones Industrial, you can compare the effects of market volatilities on Kraft Heinz and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Dow Jones.
Diversification Opportunities for Kraft Heinz and Dow Jones
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and Dow is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Dow Jones go up and down completely randomly.
Pair Corralation between Kraft Heinz and Dow Jones
Assuming the 90 days trading horizon Kraft Heinz Co is expected to under-perform the Dow Jones. In addition to that, Kraft Heinz is 1.66 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of volatility. If you would invest 3,389,102 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 1,040,549 from holding Dow Jones Industrial or generate 30.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Kraft Heinz Co vs. Dow Jones Industrial
Performance |
| Timeline |
Kraft Heinz and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kraft Heinz Co
Pair trading matchups for Kraft Heinz
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kraft Heinz and Dow Jones
The main advantage of trading using opposite Kraft Heinz and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Kraft Heinz vs. CompuGroup Medical SE | Kraft Heinz vs. Constellation Software | Kraft Heinz vs. SCANDMEDICAL SOLDK 040 | Kraft Heinz vs. Clearside Biomedical |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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