Correlation Between Kroger and Wm Morrison
Can any of the company-specific risk be diversified away by investing in both Kroger and Wm Morrison 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 Kroger and Wm Morrison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kroger Company and Wm Morrison Supermarkets, you can compare the effects of market volatilities on Kroger and Wm Morrison 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 Kroger with a short position of Wm Morrison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and Wm Morrison.
Diversification Opportunities for Kroger and Wm Morrison
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kroger and MRWSF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company and Wm Morrison Supermarkets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wm Morrison Supermarkets and Kroger 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 Kroger Company are associated (or correlated) with Wm Morrison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wm Morrison Supermarkets has no effect on the direction of Kroger i.e., Kroger and Wm Morrison go up and down completely randomly.
Pair Corralation between Kroger and Wm Morrison
If you would invest 4,356 in Kroger Company on January 18, 2024 and sell it today you would earn a total of 1,170 from holding Kroger Company or generate 26.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kroger Company vs. Wm Morrison Supermarkets
Performance |
| Timeline |
| Kroger Company |
| Wm Morrison Supermarkets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kroger and Wm Morrison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kroger and Wm Morrison
The main advantage of trading using opposite Kroger and Wm Morrison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kroger position performs unexpectedly, Wm Morrison 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 Wm Morrison will offset losses from the drop in Wm Morrison's long position.| Kroger vs. Grocery Outlet Holding | Kroger vs. Sprouts Farmers Market | Kroger vs. Sendas Distribuidora SA | Kroger vs. Weis Markets |
| Wm Morrison vs. Dine Brands Global | Wm Morrison vs. Biglari Holdings | Wm Morrison vs. Brandywine Realty Trust | Wm Morrison vs. LuxUrban Hotels 1300 |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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