Correlation Between Shenguan Holdings and Kellanova
Can any of the company-specific risk be diversified away by investing in both Shenguan Holdings and Kellanova 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 Shenguan Holdings and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenguan Holdings Group and Kellanova, you can compare the effects of market volatilities on Shenguan Holdings and Kellanova 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 Shenguan Holdings with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenguan Holdings and Kellanova.
Diversification Opportunities for Shenguan Holdings and Kellanova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenguan and Kellanova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenguan Holdings Group and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Shenguan Holdings 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 Shenguan Holdings Group are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Shenguan Holdings i.e., Shenguan Holdings and Kellanova go up and down completely randomly.
Pair Corralation between Shenguan Holdings and Kellanova
Assuming the 90 days horizon Shenguan Holdings Group is expected to generate 2.47 times more return on investment than Kellanova. However, Shenguan Holdings is 2.47 times more volatile than Kellanova. It trades about 0.04 of its potential returns per unit of risk. Kellanova is currently generating about 0.08 per unit of risk. If you would invest 72.00 in Shenguan Holdings Group on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Shenguan Holdings Group or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.03% |
| Values | Daily Returns |
Shenguan Holdings Group vs. Kellanova
Performance |
| Timeline |
| Shenguan Holdings |
| Kellanova |
Shenguan Holdings and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenguan Holdings and Kellanova
The main advantage of trading using opposite Shenguan Holdings and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenguan Holdings position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.| Shenguan Holdings vs. BRF SA ADR | Shenguan Holdings vs. Pilgrims Pride Corp | Shenguan Holdings vs. John B Sanfilippo | Shenguan Holdings vs. Seneca Foods Corp |
| Kellanova vs. J J Snack | Kellanova vs. Central Garden Pet | Kellanova vs. Central Garden Pet | Kellanova vs. Lancaster Colony |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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