Correlation Between WK Kellogg and Romana Food
Can any of the company-specific risk be diversified away by investing in both WK Kellogg and Romana Food 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 Romana Food 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 Romana Food Brands, you can compare the effects of market volatilities on WK Kellogg and Romana Food 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 Romana Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of WK Kellogg and Romana Food.
Diversification Opportunities for WK Kellogg and Romana Food
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between KLG and Romana is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding WK Kellogg Co and Romana Food Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Romana Food Brands 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 Romana Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Romana Food Brands has no effect on the direction of WK Kellogg i.e., WK Kellogg and Romana Food go up and down completely randomly.
Pair Corralation between WK Kellogg and Romana Food
If you would invest 1,661 in WK Kellogg Co on November 1, 2024 and sell it today you would earn a total of 39.00 from holding WK Kellogg Co or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WK Kellogg Co vs. Romana Food Brands
Performance |
| Timeline |
| WK Kellogg |
| Romana Food Brands |
WK Kellogg and Romana Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WK Kellogg and Romana Food
The main advantage of trading using opposite WK Kellogg and Romana Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WK Kellogg position performs unexpectedly, Romana Food 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 Romana Food will offset losses from the drop in Romana Food's long position.| WK Kellogg vs. Wingstop | WK Kellogg vs. One Group Hospitality | WK Kellogg vs. Summa Silver Corp | WK Kellogg vs. Dominos Pizza Common |
| Romana Food vs. Proficient Auto Logistics, | Romana Food vs. Wabash National | Romana Food vs. Ryanair Holdings PLC | Romana Food vs. Ferrari NV |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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