Correlation Between Kellanova and Village Farms
Can any of the company-specific risk be diversified away by investing in both Kellanova and Village Farms 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 Village Farms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Village Farms International, you can compare the effects of market volatilities on Kellanova and Village Farms 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 Village Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Village Farms.
Diversification Opportunities for Kellanova and Village Farms
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kellanova and Village is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Village Farms International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Farms Intern 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 Village Farms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Farms Intern has no effect on the direction of Kellanova i.e., Kellanova and Village Farms go up and down completely randomly.
Pair Corralation between Kellanova and Village Farms
Taking into account the 90-day investment horizon Kellanova is expected to generate 0.26 times more return on investment than Village Farms. However, Kellanova is 3.79 times less risky than Village Farms. It trades about 0.06 of its potential returns per unit of risk. Village Farms International is currently generating about 0.0 per unit of risk. If you would invest 5,818 in Kellanova on September 25, 2024 and sell it today you would earn a total of 2,264 from holding Kellanova or generate 38.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kellanova vs. Village Farms International
Performance |
Timeline |
Kellanova |
Village Farms Intern |
Kellanova and Village Farms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kellanova and Village Farms
The main advantage of trading using opposite Kellanova and Village Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Village Farms 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 Village Farms will offset losses from the drop in Village Farms' long position.Kellanova vs. Campbell Soup | Kellanova vs. ConAgra Foods | Kellanova vs. Hormel Foods | Kellanova vs. Kraft Heinz Co |
Village Farms vs. Kellanova | Village Farms vs. Bunge Limited | Village Farms vs. Lamb Weston Holdings | Village Farms vs. Altria Group |
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.
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