Correlation Analysis Between NESTLE SA and Kraft Heinz

This module allows you to analyze existing cross correlation between NESTLE SA and The Kraft Heinz Company. You can compare the effects of market volatilities on NESTLE SA and Kraft Heinz 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 NESTLE SA with a short position of Kraft Heinz. See also your portfolio center. Please also check ongoing floating volatility patterns of NESTLE SA and Kraft Heinz.
Horizon     30 Days    Login   to change
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Comparative Performance

NESTLE SA  
00

Risk-Adjusted Performance

Over the last 30 days NESTLE SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Kraft Heinz  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Kraft Heinz Company are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. Despite somewhat inconsistent basic indicators, Kraft Heinz sustained solid returns over the last few months and may actually be approaching a breakup point.

NESTLE SA and Kraft Heinz Volatility Contrast

 Predicted Return Density 
      Returns 

NESTLE SA  vs.  The Kraft Heinz Company

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NESTLE SA is expected to under-perform the Kraft Heinz. But the otc stock apears to be less risky and, when comparing its historical volatility, NESTLE SA is 1.63 times less risky than Kraft Heinz. The otc stock trades about -0.07 of its potential returns per unit of risk. The The Kraft Heinz Company is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,531  in The Kraft Heinz Company on October 16, 2019 and sell it today you would earn a total of  565.00  from holding The Kraft Heinz Company or generate 22.32% return on investment over 30 days.

Pair Corralation between NESTLE SA and Kraft Heinz

-0.59
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for NESTLE SA and Kraft Heinz

NESTLE SA diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding NESTLE SA and The Kraft Heinz Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraft Heinz and NESTLE SA 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 NESTLE SA are associated (or correlated) with Kraft Heinz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Heinz has no effect on the direction of NESTLE SA i.e. NESTLE SA and Kraft Heinz go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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