Correlation Between TR Property and Kroger
Can any of the company-specific risk be diversified away by investing in both TR Property 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 TR Property and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TR Property Investment and Kroger Co, you can compare the effects of market volatilities on TR Property 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 TR Property with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and Kroger.
Diversification Opportunities for TR Property and Kroger
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TRY and Kroger is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment and Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger and TR Property 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 TR Property Investment 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 has no effect on the direction of TR Property i.e., TR Property and Kroger go up and down completely randomly.
Pair Corralation between TR Property and Kroger
Assuming the 90 days trading horizon TR Property is expected to generate 3.45 times less return on investment than Kroger. In addition to that, TR Property is 1.06 times more volatile than Kroger Co. It trades about 0.02 of its total potential returns per unit of risk. Kroger Co is currently generating about 0.07 per unit of volatility. If you would invest 4,400 in Kroger Co on August 31, 2024 and sell it today you would earn a total of 1,666 from holding Kroger Co or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.68% |
| Values | Daily Returns |
TR Property Investment vs. Kroger Co
Performance |
| Timeline |
| TR Property Investment |
| Kroger |
TR Property and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TR Property and Kroger
The main advantage of trading using opposite TR Property and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TR Property 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.| TR Property vs. Eastman Chemical Co | TR Property vs. American Tower REIT | TR Property vs. Ameriprise Financial | TR Property vs. Ibstock PLC |
| Kroger vs. Dentsply Sirona | Kroger vs. Seche Environnement SA | Kroger vs. TR Property Investment | Kroger vs. Games Workshop Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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