Correlation Between APT Moto and Kroger
Can any of the company-specific risk be diversified away by investing in both APT Moto and Kroger 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 APT Moto and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APT Moto Vox and Kroger Company, you can compare the effects of market volatilities on APT Moto and Kroger 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 APT Moto with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Moto and Kroger.
Diversification Opportunities for APT Moto and Kroger
Pay attention - limited upside
The 3 months correlation between APT and Kroger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding APT Moto Vox and Kroger Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger Company and APT Moto 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 APT Moto Vox are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger Company has no effect on the direction of APT Moto i.e., APT Moto and Kroger go up and down completely randomly.
Pair Corralation between APT Moto and Kroger
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 |
APT Moto Vox vs. Kroger Company
Performance |
| Timeline |
| APT Moto Vox |
| Kroger Company |
APT Moto and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Moto and Kroger
The main advantage of trading using opposite APT Moto and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Moto position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| APT Moto vs. Kroger Company | APT Moto vs. Krispy Kreme | APT Moto vs. Albertsons Companies | APT Moto vs. Ocado Group plc |
| Kroger vs. Grocery Outlet Holding | Kroger vs. Sprouts Farmers Market | Kroger vs. Sendas Distribuidora SA | Kroger 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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