Correlation Between DAVIDsTEA and Kellogg

By analyzing existing cross correlation between DAVIDsTEA and Kellogg Company you can compare the effects of market volatilities on DAVIDsTEA and Kellogg 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 DAVIDsTEA with a short position of Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAVIDsTEA and Kellogg.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both DAVIDsTEA and Kellogg at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing DAVIDsTEA and Kellogg into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for DAVIDsTEA and Kellogg

0.22
Correlation
<div class='circular--portrait-small' style='font-weight: 700;background:#169D0B;color: #E6E6FA;font-size:1.1em;padding-top: 10px;;'>DA</div>
<div class='circular--portrait-small' style='font-weight: 700;background:#754DEB;color: #F0FFF0;font-size:1.7em;padding-top:4px;;'>K</div>

Modest diversification

The 3 months correlation between DAVIDsTEA and Kellogg is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding DAVIDsTEA Inc and Kellogg Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company and DAVIDsTEA 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 DAVIDsTEA are associated (or correlated) with Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of DAVIDsTEA i.e. DAVIDsTEA and Kellogg go up and down completely randomly.

Pair Corralation between DAVIDsTEA and Kellogg

Given the investment horizon of 30 days, DAVIDsTEA is expected to under-perform the Kellogg. In addition to that, DAVIDsTEA is 2.87 times more volatile than Kellogg Company. It trades about 0.0 of its total potential returns per unit of risk. Kellogg Company is currently generating about 0.04 per unit of volatility. If you would invest  6,296  in Kellogg Company on April 29, 2020 and sell it today you would earn a total of  246.00  from holding Kellogg Company or generate 3.91% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

DAVIDsTEA Inc  vs.  Kellogg Company

 Performance (%) 
      Timeline 
DAVIDsTEA 
00

DAVIDsTEA Risk-Adjusted Performance

Over the last 30 days DAVIDsTEA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, DAVIDsTEA is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
Kellogg Company 
22

Kellogg Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kellogg Company are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly weak technical and fundamental indicators, Kellogg may actually be approaching a critical reversion point that can send shares even higher in June 2020.

DAVIDsTEA and Kellogg Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page