Correlation Between WK Kellogg and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both WK Kellogg and ATIF Holdings 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 ATIF Holdings 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 ATIF Holdings Limited, you can compare the effects of market volatilities on WK Kellogg and ATIF Holdings 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 ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of WK Kellogg and ATIF Holdings.
Diversification Opportunities for WK Kellogg and ATIF Holdings
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLG and ATIF is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding WK Kellogg Co and ATIF Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings Limited 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 ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings Limited has no effect on the direction of WK Kellogg i.e., WK Kellogg and ATIF Holdings go up and down completely randomly.
Pair Corralation between WK Kellogg and ATIF Holdings
Considering the 90-day investment horizon WK Kellogg Co is expected to under-perform the ATIF Holdings. But the stock apears to be less risky and, when comparing its historical volatility, WK Kellogg Co is 5.26 times less risky than ATIF Holdings. The stock trades about -0.13 of its potential returns per unit of risk. The ATIF Holdings Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 88.00 in ATIF Holdings Limited on October 26, 2024 and sell it today you would earn a total of 40.00 from holding ATIF Holdings Limited or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WK Kellogg Co vs. ATIF Holdings Limited
Performance |
| Timeline |
| WK Kellogg |
| ATIF Holdings Limited |
WK Kellogg and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WK Kellogg and ATIF Holdings
The main advantage of trading using opposite WK Kellogg and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WK Kellogg position performs unexpectedly, ATIF Holdings 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.| WK Kellogg vs. Tandy Leather Factory | WK Kellogg vs. SLR Investment Corp | WK Kellogg vs. Fidus Investment Corp | WK Kellogg vs. NorthWestern |
| ATIF Holdings vs. Bridgford Foods | ATIF Holdings vs. Ingredion Incorporated | ATIF Holdings vs. WK Kellogg Co | ATIF Holdings vs. Cementos Pacasmayo SAA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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