Correlation Between Kikkoman and Else Nutrition

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

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

Diversification Opportunities for Kikkoman and Else Nutrition

-0.37

Correlation Coefficient

Kikkoman  Else Nutrition

Very good diversification

The 3 months correlation between Kikkoman and Else is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kikkoman and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings and Kikkoman 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 Kikkoman are associated (or correlated) with Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Kikkoman i.e., Kikkoman and Else Nutrition go up and down completely randomly.

Pair Corralation between Kikkoman and Else Nutrition

Assuming the 90 days horizon Kikkoman is expected to under-perform the Else Nutrition. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kikkoman is 19.1 times less risky than Else Nutrition. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Else Nutrition Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1.40  in Else Nutrition Holdings on May 4, 2025 and sell it today you would earn a total of  1.80  from holding Else Nutrition Holdings or generate 128.57% return on investment over 90 days.

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

Kikkoman  vs.  Else Nutrition Holdings

Kikkoman

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kikkoman has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Else Nutrition Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Else Nutrition Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Else Nutrition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kikkoman and Else Nutrition

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

The idea behind Kikkoman and Else Nutrition Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..