Correlation Between Uniper SE and Kroger
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Kroger 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 Uniper SE and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Kroger Co, you can compare the effects of market volatilities on Uniper SE and Kroger 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 Uniper SE with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Kroger.
Diversification Opportunities for Uniper SE and Kroger
Pay attention - limited upside
The 3 months correlation between Uniper and Kroger is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger and Uniper SE 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 Uniper SE are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger has no effect on the direction of Uniper SE i.e., Uniper SE and Kroger go up and down completely randomly.
Pair Corralation between Uniper SE and Kroger
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Kroger. In addition to that, Uniper SE is 1.69 times more volatile than Kroger Co. It trades about -0.2 of its total potential returns per unit of risk. Kroger Co is currently generating about 0.13 per unit of volatility. If you would invest 5,552 in Kroger Co on September 26, 2024 and sell it today you would earn a total of 616.00 from holding Kroger Co or generate 11.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Uniper SE vs. Kroger Co
Performance |
Timeline |
Uniper SE |
Kroger |
Uniper SE and Kroger Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uniper SE and Kroger
The main advantage of trading using opposite Uniper SE and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
Kroger vs. Uniper SE | Kroger vs. Mulberry Group PLC | Kroger vs. London Security Plc | Kroger vs. Triad Group PLC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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