Correlation Between NYSE Composite and KROGER
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By analyzing existing cross correlation between NYSE Composite and KROGER CO, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and KROGER.
Diversification Opportunities for NYSE Composite and KROGER
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and KROGER is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and KROGER CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER CO and NYSE Composite 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 NYSE Composite 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 CO has no effect on the direction of NYSE Composite i.e., NYSE Composite and KROGER go up and down completely randomly.
Pair Corralation between NYSE Composite and KROGER
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.42 times more return on investment than KROGER. However, NYSE Composite is 2.4 times less risky than KROGER. It trades about 0.42 of its potential returns per unit of risk. KROGER CO is currently generating about 0.03 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
NYSE Composite vs. KROGER CO
Performance |
| Timeline |
NYSE Composite and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
KROGER CO
Pair trading matchups for KROGER
Pair Trading with NYSE Composite and KROGER
The main advantage of trading using opposite NYSE Composite and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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