Correlation Between Diamond Foods and Kellanova
Can any of the company-specific risk be diversified away by investing in both Diamond Foods and Kellanova 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 Diamond Foods and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Foods and Kellanova, you can compare the effects of market volatilities on Diamond Foods and Kellanova 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 Diamond Foods with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Foods and Kellanova.
Diversification Opportunities for Diamond Foods and Kellanova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Diamond and Kellanova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Foods and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Diamond Foods 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 Diamond Foods are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Diamond Foods i.e., Diamond Foods and Kellanova go up and down completely randomly.
Pair Corralation between Diamond Foods and Kellanova
If you would invest 5,565 in Kellanova on January 25, 2024 and sell it today you would earn a total of 313.00 from holding Kellanova or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Diamond Foods vs. Kellanova
Performance |
| Timeline |
| Diamond Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kellanova |
Diamond Foods and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Foods and Kellanova
The main advantage of trading using opposite Diamond Foods and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Foods position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.| Diamond Foods vs. Radcom | Diamond Foods vs. Kaltura | Diamond Foods vs. Arrow Electronics | Diamond Foods vs. Highway Holdings Limited |
| Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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