Correlation Between Hershey Creamery and Kraft Heinz

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

By analyzing existing cross correlation between Hershey Creamery and Kraft Heinz Co, you can compare the effects of market volatilities on Hershey Creamery and Kraft Heinz 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 Hershey Creamery with a short position of Kraft Heinz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hershey Creamery and Kraft Heinz.

Diversification Opportunities for Hershey Creamery and Kraft Heinz

0.0

Correlation Coefficient

Hershey Creamery  Kraft Heinz

Pay attention - limited upside

The 3 months correlation between Hershey and Kraft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hershey Creamery and Kraft Heinz Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Heinz and Hershey Creamery 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 Hershey Creamery are associated (or correlated) with Kraft Heinz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Heinz has no effect on the direction of Hershey Creamery i.e., Hershey Creamery and Kraft Heinz go up and down completely randomly.

Pair Corralation between Hershey Creamery and Kraft Heinz

If you would invest  3,957  in Kraft Heinz Co on January 25, 2024 and sell it today you would lose (150.00) from holding Kraft Heinz Co or give up 3.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hershey Creamery  vs.  Kraft Heinz Co

Hershey Creamery

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Hershey Creamery has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Hershey Creamery is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Kraft Heinz

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kraft Heinz Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Kraft Heinz is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hershey Creamery and Kraft Heinz

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

The idea behind Hershey Creamery and Kraft Heinz Co 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..