Correlation Between Kesko Oyj and Albertsons Companies
Can any of the company-specific risk be diversified away by investing in both Kesko Oyj and Albertsons Companies 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 Kesko Oyj and Albertsons Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesko Oyj ADR and Albertsons Companies, you can compare the effects of market volatilities on Kesko Oyj and Albertsons Companies 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 Kesko Oyj with a short position of Albertsons Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and Albertsons Companies.
Diversification Opportunities for Kesko Oyj and Albertsons Companies
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kesko and Albertsons is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj ADR and Albertsons Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albertsons Companies and Kesko Oyj 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 Kesko Oyj ADR are associated (or correlated) with Albertsons Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albertsons Companies has no effect on the direction of Kesko Oyj i.e., Kesko Oyj and Albertsons Companies go up and down completely randomly.
Pair Corralation between Kesko Oyj and Albertsons Companies
Assuming the 90 days horizon Kesko Oyj ADR is expected to under-perform the Albertsons Companies. In addition to that, Kesko Oyj is 1.13 times more volatile than Albertsons Companies. It trades about -0.02 of its total potential returns per unit of risk. Albertsons Companies is currently generating about 0.15 per unit of volatility. If you would invest 1,973 in Albertsons Companies on November 9, 2024 and sell it today you would earn a total of 90.00 from holding Albertsons Companies or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kesko Oyj ADR vs. Albertsons Companies
Performance |
| Timeline |
| Kesko Oyj ADR |
| Albertsons Companies |
Kesko Oyj and Albertsons Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesko Oyj and Albertsons Companies
The main advantage of trading using opposite Kesko Oyj and Albertsons Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj position performs unexpectedly, Albertsons Companies 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 Albertsons Companies will offset losses from the drop in Albertsons Companies' long position.| Kesko Oyj vs. Carrefour SA PK | Kesko Oyj vs. J Sainsbury plc | Kesko Oyj vs. Om Holdings International | Kesko Oyj vs. J Sainsbury PLC |
| Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Weis Markets |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |