Correlation Between Kering SA and PREMIER FOODS
Can any of the company-specific risk be diversified away by investing in both Kering SA and PREMIER FOODS 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 Kering SA and PREMIER FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kering SA and PREMIER FOODS, you can compare the effects of market volatilities on Kering SA and PREMIER FOODS 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 Kering SA with a short position of PREMIER FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kering SA and PREMIER FOODS.
Diversification Opportunities for Kering SA and PREMIER FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kering and PREMIER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kering SA and PREMIER FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PREMIER FOODS and Kering SA 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 Kering SA are associated (or correlated) with PREMIER FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PREMIER FOODS has no effect on the direction of Kering SA i.e., Kering SA and PREMIER FOODS go up and down completely randomly.
Pair Corralation between Kering SA and PREMIER FOODS
If you would invest 153.00 in PREMIER FOODS on September 5, 2024 and sell it today you would earn a total of 83.00 from holding PREMIER FOODS or generate 54.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kering SA vs. PREMIER FOODS
Performance |
| Timeline |
| Kering SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PREMIER FOODS |
Kering SA and PREMIER FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kering SA and PREMIER FOODS
The main advantage of trading using opposite Kering SA and PREMIER FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kering SA position performs unexpectedly, PREMIER FOODS 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 PREMIER FOODS will offset losses from the drop in PREMIER FOODS's long position.| Kering SA vs. Comba Telecom Systems | Kering SA vs. United Internet AG | Kering SA vs. Cogent Communications Holdings | Kering SA vs. BOSTON BEER A |
| PREMIER FOODS vs. TOTAL GABON | PREMIER FOODS vs. Walgreens Boots Alliance | PREMIER FOODS vs. Peak Resources Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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