Correlation Between Blue Ocean and Kellanova

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

By analyzing existing cross correlation between Blue Ocean Acquisition and Kellanova, you can compare the effects of market volatilities on Blue Ocean and Kellanova 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 Blue Ocean with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Ocean and Kellanova.

Diversification Opportunities for Blue Ocean and Kellanova

-0.33

Correlation Coefficient

Blue Ocean  Kellanova

Very good diversification

The 3 months correlation between Blue and Kellanova is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blue Ocean Acquisition and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Blue Ocean 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 Blue Ocean Acquisition are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Blue Ocean i.e., Blue Ocean and Kellanova go up and down completely randomly.

Pair Corralation between Blue Ocean and Kellanova

If you would invest  8,082  in Kellanova on October 25, 2024 and sell it today you would earn a total of  95.00  from holding Kellanova or generate 1.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Blue Ocean Acquisition  vs.  Kellanova

Blue Ocean Acquisition

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Blue Ocean Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Blue Ocean is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kellanova

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kellanova are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Kellanova is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Blue Ocean and Kellanova

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

The idea behind Blue Ocean Acquisition and Kellanova 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.