Correlation Between J J and Kraft Heinz
Can any of the company-specific risk be diversified away by investing in both J J 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 J J and Kraft Heinz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J J Snack and Kraft Heinz Co, you can compare the effects of market volatilities on J J 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 J J with a short position of Kraft Heinz. Check out your portfolio center. Please also check ongoing floating volatility patterns of J J and Kraft Heinz.
Diversification Opportunities for J J and Kraft Heinz
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JJSF and Kraft is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding J J Snack and Kraft Heinz Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Heinz and J J 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 J J Snack 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 J J i.e., J J and Kraft Heinz go up and down completely randomly.
Pair Corralation between J J and Kraft Heinz
Given the investment horizon of 90 days J J Snack is expected to under-perform the Kraft Heinz. In addition to that, J J is 1.13 times more volatile than Kraft Heinz Co. It trades about -0.26 of its total potential returns per unit of risk. Kraft Heinz Co is currently generating about -0.02 per unit of volatility. If you would invest 3,161 in Kraft Heinz Co on December 1, 2024 and sell it today you would lose (90.00) from holding Kraft Heinz Co or give up 2.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
J J Snack vs. Kraft Heinz Co
Performance |
Timeline |
J J Snack |
Kraft Heinz |
J J and Kraft Heinz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with J J and Kraft Heinz
The main advantage of trading using opposite J J and Kraft Heinz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J J 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 J J Snack 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.Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |