Correlation Between KRAFT and Siriuspoint
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By analyzing existing cross correlation between KRAFT HEINZ FOODS and Siriuspoint, you can compare the effects of market volatilities on KRAFT and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRAFT and Siriuspoint.
Diversification Opportunities for KRAFT and Siriuspoint
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KRAFT and Siriuspoint is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KRAFT HEINZ FOODS and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of KRAFT i.e., KRAFT and Siriuspoint go up and down completely randomly.
Pair Corralation between KRAFT and Siriuspoint
Assuming the 90 days trading horizon KRAFT HEINZ FOODS is expected to under-perform the Siriuspoint. But the bond apears to be less risky and, when comparing its historical volatility, KRAFT HEINZ FOODS is 5.53 times less risky than Siriuspoint. The bond trades about -0.14 of its potential returns per unit of risk. The Siriuspoint is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Siriuspoint on September 5, 2024 and sell it today you would earn a total of 242.00 from holding Siriuspoint or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KRAFT HEINZ FOODS vs. Siriuspoint
Performance |
| Timeline |
| KRAFT HEINZ FOODS |
| Siriuspoint |
KRAFT and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRAFT and Siriuspoint
The main advantage of trading using opposite KRAFT and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRAFT position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.The idea behind KRAFT HEINZ FOODS and Siriuspoint pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. SCOR PK | Siriuspoint vs. Aquagold International | Siriuspoint vs. Thrivent High Yield |
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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