Correlation Between Kroger and APT Moto
Can any of the company-specific risk be diversified away by investing in both Kroger and APT Moto 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 Kroger and APT Moto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kroger Company and APT Moto Vox, you can compare the effects of market volatilities on Kroger and APT Moto 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 Kroger with a short position of APT Moto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and APT Moto.
Diversification Opportunities for Kroger and APT Moto
Pay attention - limited upside
The 3 months correlation between Kroger and APT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company and APT Moto Vox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Moto Vox and Kroger 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 Kroger Company are associated (or correlated) with APT Moto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Moto Vox has no effect on the direction of Kroger i.e., Kroger and APT Moto go up and down completely randomly.
Pair Corralation between Kroger and APT Moto
If you would invest 4,404 in Kroger Company on September 14, 2024 and sell it today you would earn a total of 1,886 from holding Kroger Company or generate 42.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Kroger Company vs. APT Moto Vox
Performance |
| Timeline |
| Kroger Company |
| APT Moto Vox |
Kroger and APT Moto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kroger and APT Moto
The main advantage of trading using opposite Kroger and APT Moto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kroger position performs unexpectedly, APT Moto 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 APT Moto will offset losses from the drop in APT Moto's long position.| Kroger vs. Grocery Outlet Holding | Kroger vs. Sprouts Farmers Market | Kroger vs. Sendas Distribuidora SA | Kroger vs. Weis Markets |
| APT Moto vs. Kroger Company | APT Moto vs. Krispy Kreme | APT Moto vs. Albertsons Companies | APT Moto vs. Ocado Group plc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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