Correlation Between Wing Yip and Kellanova
Can any of the company-specific risk be diversified away by investing in both Wing Yip and Kellanova 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 Wing Yip and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wing Yip Food and Kellanova, you can compare the effects of market volatilities on Wing Yip and Kellanova 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 Wing Yip with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wing Yip and Kellanova.
Diversification Opportunities for Wing Yip and Kellanova
Very good diversification
The 3 months correlation between Wing and Kellanova is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wing Yip Food and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Wing Yip 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 Wing Yip Food are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Wing Yip i.e., Wing Yip and Kellanova go up and down completely randomly.
Pair Corralation between Wing Yip and Kellanova
Given the investment horizon of 90 days Wing Yip Food is expected to generate 279.64 times more return on investment than Kellanova. However, Wing Yip is 279.64 times more volatile than Kellanova. It trades about 0.38 of its potential returns per unit of risk. Kellanova is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Wing Yip Food on September 5, 2024 and sell it today you would earn a total of 445.00 from holding Wing Yip Food or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.41% |
| Values | Daily Returns |
Wing Yip Food vs. Kellanova
Performance |
| Timeline |
| Wing Yip Food |
| Kellanova |
Wing Yip and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wing Yip and Kellanova
The main advantage of trading using opposite Wing Yip and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wing Yip position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.| Wing Yip vs. Kellanova | Wing Yip vs. Lamb Weston Holdings | Wing Yip vs. Borealis Foods | Wing Yip vs. Westrock Coffee |
| Kellanova vs. Hormel Foods | Kellanova vs. McCormick Company Incorporated | Kellanova vs. Lamb Weston Holdings | Kellanova vs. JM Smucker |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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