Correlation Between Kellanova and Adecoagro

Can any of the company-specific risk be diversified away by investing in both Kellanova and Adecoagro 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 Adecoagro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kellanova and Adecoagro SA, you can compare the effects of market volatilities on Kellanova and Adecoagro 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 Adecoagro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Adecoagro.

Diversification Opportunities for Kellanova and Adecoagro

-0.32

Correlation Coefficient

Kellanova  Adecoagro

Very good diversification

The 3 months correlation between Kellanova and Adecoagro is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Adecoagro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecoagro SA 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 Adecoagro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecoagro SA has no effect on the direction of Kellanova i.e., Kellanova and Adecoagro go up and down completely randomly.

Pair Corralation between Kellanova and Adecoagro

Taking into account the 90-day investment horizon Kellanova is expected to under-perform the Adecoagro. But the stock apears to be less risky and, when comparing its historical volatility, Kellanova is 3.42 times less risky than Adecoagro. The stock trades about -0.09 of its potential returns per unit of risk. The Adecoagro SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  861.00  in Adecoagro SA on May 7, 2025 and sell it today you would earn a total of  51.00  from holding Adecoagro SA or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kellanova  vs.  Adecoagro SA

Kellanova

Risk-Adjusted Performance

Weakest

Over the last 90 days Kellanova has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Kellanova is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Adecoagro SA

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Adecoagro SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Adecoagro may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Kellanova and Adecoagro

The main advantage of trading using opposite Kellanova and Adecoagro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Adecoagro 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 Adecoagro will offset losses from the drop in Adecoagro's long position.

The idea behind Kellanova and Adecoagro SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.