Two Equities Correlation Analysis
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KHC
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Kraft Heinz and NYSE Composite
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kraft and NYSE is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Kraft Heinz 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 Co are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and NYSE Composite go up and down completely randomly.
Pair Corralation between Kraft Heinz and NYSE Composite
Considering the 90-day investment horizon Kraft Heinz is expected to generate 6.5 times less return on investment than NYSE Composite. In addition to that, Kraft Heinz is 1.29 times more volatile than NYSE Composite. It trades about 0.0 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of volatility. If you would invest 1,653,420 in NYSE Composite on December 30, 2023 and sell it today you would earn a total of 177,847 from holding NYSE Composite or generate 10.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kraft Heinz Co vs. NYSE Composite
Performance |
Timeline |
Kraft Heinz and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Kraft Heinz Co
Pair trading matchups for Kraft Heinz
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Kraft Heinz and NYSE Composite
The main advantage of trading using opposite Kraft Heinz and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Kraft Heinz vs. Natural Alternatives International | Kraft Heinz vs. Natures Sunshine Products | Kraft Heinz vs. Nocera Inc | Kraft Heinz vs. Borealis Foods |
NYSE Composite vs. Mediag3 | NYSE Composite vs. Douglas Emmett | NYSE Composite vs. United Homes Group | NYSE Composite vs. Reservoir Media |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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