Correlation Between Kraft Heinz and IShares Short
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and IShares Short 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 Kraft Heinz and IShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and IShares Short Maturity, you can compare the effects of market volatilities on Kraft Heinz and IShares Short 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 Kraft Heinz with a short position of IShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and IShares Short.
Diversification Opportunities for Kraft Heinz and IShares Short
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and IShares is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and IShares Short Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Short Maturity and Kraft Heinz 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 Kraft Heinz Co are associated (or correlated) with IShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Short Maturity has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and IShares Short go up and down completely randomly.
Pair Corralation between Kraft Heinz and IShares Short
Considering the 90-day investment horizon Kraft Heinz Co is expected to generate 8.82 times more return on investment than IShares Short. However, Kraft Heinz is 8.82 times more volatile than IShares Short Maturity. It trades about 0.3 of its potential returns per unit of risk. IShares Short Maturity is currently generating about 0.25 per unit of risk. If you would invest 3,514 in Kraft Heinz Co on December 30, 2023 and sell it today you would earn a total of 176.00 from holding Kraft Heinz Co or generate 5.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kraft Heinz Co vs. IShares Short Maturity
Performance |
Timeline |
Kraft Heinz |
IShares Short Maturity |
Kraft Heinz and IShares Short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kraft Heinz and IShares Short
The main advantage of trading using opposite Kraft Heinz and IShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, IShares Short 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 IShares Short will offset losses from the drop in IShares Short's long position.Kraft Heinz vs. Natural Alternatives International | Kraft Heinz vs. Natures Sunshine Products | Kraft Heinz vs. Nocera Inc | Kraft Heinz vs. Borealis Foods |
IShares Short vs. VanEck Vectors Moodys | IShares Short vs. Vanguard ESG US | IShares Short vs. Vanguard Intermediate Term Corporate | IShares Short vs. Vanguard Long Term Corporate |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Positions Ratings 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 | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |