Correlation Between RETAIL FOOD and KYB CORPORATION

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

By analyzing existing cross correlation between RETAIL FOOD GROUP and KYB PORATION, you can compare the effects of market volatilities on RETAIL FOOD and KYB CORPORATION 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 RETAIL FOOD with a short position of KYB CORPORATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and KYB CORPORATION.

Diversification Opportunities for RETAIL FOOD and KYB CORPORATION

0.0

Correlation Coefficient

RETAIL FOOD  KYB CORPORATION

Pay attention - limited upside

The 3 months correlation between RETAIL and KYB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and KYB PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYB CORPORATION and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with KYB CORPORATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYB CORPORATION has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and KYB CORPORATION go up and down completely randomly.

Pair Corralation between RETAIL FOOD and KYB CORPORATION

If you would invest  0.00  in KYB PORATION on December 19, 2024 and sell it today you would earn a total of  0.00  from holding KYB PORATION or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

RETAIL FOOD GROUP  vs.  KYB PORATION

RETAIL FOOD GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days RETAIL FOOD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

KYB CORPORATION

Risk-Adjusted Performance

OK

Over the last 90 days KYB PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KYB CORPORATION is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with RETAIL FOOD and KYB CORPORATION

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

The idea behind RETAIL FOOD GROUP and KYB PORATION 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.