Correlation Between WK Kellogg and Integral
Can any of the company-specific risk be diversified away by investing in both WK Kellogg and Integral 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 WK Kellogg and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WK Kellogg Co and Integral Ad Science, you can compare the effects of market volatilities on WK Kellogg and Integral 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 WK Kellogg with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of WK Kellogg and Integral.
Diversification Opportunities for WK Kellogg and Integral
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between KLG and Integral is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding WK Kellogg Co and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and WK Kellogg 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 WK Kellogg Co are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of WK Kellogg i.e., WK Kellogg and Integral go up and down completely randomly.
Pair Corralation between WK Kellogg and Integral
Considering the 90-day investment horizon WK Kellogg Co is expected to generate 1.11 times more return on investment than Integral. However, WK Kellogg is 1.11 times more volatile than Integral Ad Science. It trades about 0.01 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.0 per unit of risk. If you would invest 1,702 in WK Kellogg Co on October 26, 2024 and sell it today you would lose (14.00) from holding WK Kellogg Co or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WK Kellogg Co vs. Integral Ad Science
Performance |
| Timeline |
| WK Kellogg |
| Integral Ad Science |
WK Kellogg and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WK Kellogg and Integral
The main advantage of trading using opposite WK Kellogg and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WK Kellogg position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| WK Kellogg vs. Tandy Leather Factory | WK Kellogg vs. SLR Investment Corp | WK Kellogg vs. Fidus Investment Corp | WK Kellogg vs. NorthWestern |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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