Correlation Between Kellanova and Bon Natural
Can any of the company-specific risk be diversified away by investing in both Kellanova and Bon Natural 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 Kellanova and Bon Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Bon Natural Life, you can compare the effects of market volatilities on Kellanova and Bon Natural 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 Kellanova with a short position of Bon Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Bon Natural.
Diversification Opportunities for Kellanova and Bon Natural
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kellanova and Bon is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Bon Natural Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bon Natural Life and Kellanova 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 Kellanova are associated (or correlated) with Bon Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bon Natural Life has no effect on the direction of Kellanova i.e., Kellanova and Bon Natural go up and down completely randomly.
Pair Corralation between Kellanova and Bon Natural
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.21 times more return on investment than Bon Natural. However, Kellanova is 4.8 times less risky than Bon Natural. It trades about 0.13 of its potential returns per unit of risk. Bon Natural Life is currently generating about -0.13 per unit of risk. If you would invest 5,557 in Kellanova on February 20, 2024 and sell it today you would earn a total of 654.50 from holding Kellanova or generate 11.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Kellanova vs. Bon Natural Life
Performance |
Timeline |
Kellanova |
Bon Natural Life |
Kellanova and Bon Natural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kellanova and Bon Natural
The main advantage of trading using opposite Kellanova and Bon Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Bon Natural 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 Bon Natural will offset losses from the drop in Bon Natural's long position.The idea behind Kellanova and Bon Natural Life 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.Bon Natural vs. Seneca Foods Corp | Bon Natural vs. Central Garden Pet | Bon Natural vs. Central Garden Pet | Bon Natural vs. Lifeway Foods |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
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 | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |