Correlation Between KRAFT and Dow Jones
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By analyzing existing cross correlation between KRAFT HEINZ FOODS and Dow Jones Industrial, you can compare the effects of market volatilities on KRAFT and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and Dow Jones.
Diversification Opportunities for KRAFT and Dow Jones
Excellent diversification
The 3 months correlation between KRAFT and Dow is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT HEINZ FOODS and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 HEINZ FOODS are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of KRAFT i.e., KRAFT and Dow Jones go up and down completely randomly.
Pair Corralation between KRAFT and Dow Jones
Assuming the 90 days trading horizon KRAFT HEINZ FOODS is expected to under-perform the Dow Jones. In addition to that, KRAFT is 1.52 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
KRAFT HEINZ FOODS vs. Dow Jones Industrial
Performance |
| Timeline |
KRAFT and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
KRAFT HEINZ FOODS
Pair trading matchups for KRAFT
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KRAFT and Dow Jones
The main advantage of trading using opposite KRAFT and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| KRAFT vs. Sapiens International | KRAFT vs. Chester Mining | KRAFT vs. Paysafe | KRAFT vs. Sandstorm Gold Ltd |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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