Correlation Between Kellanova and China Mengniu
Can any of the company-specific risk be diversified away by investing in both Kellanova and China Mengniu 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 Kellanova and China Mengniu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and China Mengniu Dairy, you can compare the effects of market volatilities on Kellanova and China Mengniu 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 Kellanova with a short position of China Mengniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and China Mengniu.
Diversification Opportunities for Kellanova and China Mengniu
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kellanova and China is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and China Mengniu Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mengniu Dairy and Kellanova 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 Kellanova are associated (or correlated) with China Mengniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mengniu Dairy has no effect on the direction of Kellanova i.e., Kellanova and China Mengniu go up and down completely randomly.
Pair Corralation between Kellanova and China Mengniu
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.49 times more return on investment than China Mengniu. However, Kellanova is 2.06 times less risky than China Mengniu. It trades about -0.01 of its potential returns per unit of risk. China Mengniu Dairy is currently generating about -0.12 per unit of risk. If you would invest 6,053 in Kellanova on January 24, 2024 and sell it today you would lose (255.00) from holding Kellanova or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellanova vs. China Mengniu Dairy
Performance |
| Timeline |
| Kellanova |
| China Mengniu Dairy |
Kellanova and China Mengniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellanova and China Mengniu
The main advantage of trading using opposite Kellanova and China Mengniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, China Mengniu 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 China Mengniu will offset losses from the drop in China Mengniu's long position.| Kellanova vs. Bunge Limited | Kellanova vs. Archer Daniels Midland | Kellanova vs. Fresh Del Monte | Kellanova vs. Limoneira Co |
| China Mengniu vs. Kellanova | China Mengniu vs. Lancaster Colony | China Mengniu vs. The A2 Milk | China Mengniu vs. Artisan Consumer Goods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |