Correlation Between Vital Farms and SPDR Kensho

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

By analyzing existing cross correlation between Vital Farms and SPDR Kensho Intelligent, you can compare the effects of market volatilities on Vital Farms and SPDR Kensho 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 Vital Farms with a short position of SPDR Kensho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vital Farms and SPDR Kensho.

Diversification Opportunities for Vital Farms and SPDR Kensho

-0.35

Correlation Coefficient

Vital Farms  SPDR Kensho

Very good diversification

The 3 months correlation between Vital and SPDR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vital Farms and SPDR Kensho Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Kensho Intelligent and Vital Farms 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 Vital Farms are associated (or correlated) with SPDR Kensho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Kensho Intelligent has no effect on the direction of Vital Farms i.e., Vital Farms and SPDR Kensho go up and down completely randomly.

Pair Corralation between Vital Farms and SPDR Kensho

Given the investment horizon of 90 days Vital Farms is expected to under-perform the SPDR Kensho. In addition to that, Vital Farms is 1.73 times more volatile than SPDR Kensho Intelligent. It trades about -0.13 of its total potential returns per unit of risk. SPDR Kensho Intelligent is currently generating about 0.08 per unit of volatility. If you would invest  4,067  in SPDR Kensho Intelligent on September 13, 2025 and sell it today you would earn a total of  391.00  from holding SPDR Kensho Intelligent or generate 9.61% return on investment over 90 days.

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

Vital Farms  vs.  SPDR Kensho Intelligent

Vital Farms

Risk-Adjusted Performance

Weakest

Over the last 90 days Vital Farms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

SPDR Kensho Intelligent

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Kensho Intelligent are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady forward indicators, SPDR Kensho may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Vital Farms and SPDR Kensho

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

The idea behind Vital Farms and SPDR Kensho Intelligent 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.