Correlation Between TIANDE CHEMICAL and Kellogg
Can any of the company-specific risk be diversified away by investing in both TIANDE CHEMICAL and Kellogg 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 TIANDE CHEMICAL and Kellogg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIANDE CHEMICAL and Kellogg Company, you can compare the effects of market volatilities on TIANDE CHEMICAL and Kellogg 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 TIANDE CHEMICAL with a short position of Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIANDE CHEMICAL and Kellogg.
Diversification Opportunities for TIANDE CHEMICAL and Kellogg
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TIANDE and Kellogg is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TIANDE CHEMICAL and Kellogg Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company and TIANDE CHEMICAL 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 TIANDE CHEMICAL are associated (or correlated) with Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of TIANDE CHEMICAL i.e., TIANDE CHEMICAL and Kellogg go up and down completely randomly.
Pair Corralation between TIANDE CHEMICAL and Kellogg
If you would invest 7,265 in Kellogg Company on October 14, 2024 and sell it today you would earn a total of 623.00 from holding Kellogg Company or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
TIANDE CHEMICAL vs. Kellogg Company
Performance |
| Timeline |
| TIANDE CHEMICAL |
| Kellogg Company |
TIANDE CHEMICAL and Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIANDE CHEMICAL and Kellogg
The main advantage of trading using opposite TIANDE CHEMICAL and Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIANDE CHEMICAL position performs unexpectedly, Kellogg 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 Kellogg will offset losses from the drop in Kellogg's long position.| TIANDE CHEMICAL vs. ENVVENO MEDICAL DL 00001 | TIANDE CHEMICAL vs. PULSION Medical Systems | TIANDE CHEMICAL vs. AIR PRODCHEMICALS | TIANDE CHEMICAL vs. SIEM OFFSHORE NEW |
| Kellogg vs. ANTA SPORTS PRODUCT | Kellogg vs. Nippon Light Metal | Kellogg vs. VIENNA INSURANCE GR | Kellogg vs. Jacquet Metal Service |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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