Correlation Between KRAFT and ChampionX
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By analyzing existing cross correlation between KRAFT FOODS GROUP and ChampionX, you can compare the effects of market volatilities on KRAFT and ChampionX 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 KRAFT with a short position of ChampionX. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and ChampionX.
Diversification Opportunities for KRAFT and ChampionX
Very good diversification
The 3 months correlation between KRAFT and ChampionX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT FOODS GROUP and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX and KRAFT 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 KRAFT FOODS GROUP are associated (or correlated) with ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of KRAFT i.e., KRAFT and ChampionX go up and down completely randomly.
Pair Corralation between KRAFT and ChampionX
Assuming the 90 days trading horizon KRAFT is expected to generate 8.27 times less return on investment than ChampionX. But when comparing it to its historical volatility, KRAFT FOODS GROUP is 2.01 times less risky than ChampionX. It trades about 0.01 of its potential returns per unit of risk. ChampionX is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,845 in ChampionX on September 2, 2024 and sell it today you would earn a total of 250.00 from holding ChampionX or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.44% |
| Values | Daily Returns |
KRAFT FOODS GROUP vs. ChampionX
Performance |
| Timeline |
| KRAFT FOODS GROUP |
| ChampionX |
KRAFT and ChampionX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAFT and ChampionX
The main advantage of trading using opposite KRAFT and ChampionX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT position performs unexpectedly, ChampionX 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 ChampionX will offset losses from the drop in ChampionX's long position.| KRAFT vs. ChampionX | KRAFT vs. Simpson Manufacturing | KRAFT vs. Kite Realty Group | KRAFT vs. Upper Street Marketing |
| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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