Correlation Between Kellanova and Bolt Projects

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

By analyzing existing cross correlation between Kellanova and Bolt Projects Holdings,, you can compare the effects of market volatilities on Kellanova and Bolt Projects 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 Bolt Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Bolt Projects.

Diversification Opportunities for Kellanova and Bolt Projects

0.05

Correlation Coefficient

Kellanova  Bolt Projects

Significant diversification

The 3 months correlation between Kellanova and Bolt is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, 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 Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Kellanova i.e., Kellanova and Bolt Projects go up and down completely randomly.

Pair Corralation between Kellanova and Bolt Projects

Taking into account the 90-day investment horizon Kellanova is expected to generate 39.31 times less return on investment than Bolt Projects. But when comparing it to its historical volatility, Kellanova is 74.58 times less risky than Bolt Projects. It trades about 0.35 of its potential returns per unit of risk. Bolt Projects Holdings, is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  4.00  in Bolt Projects Holdings, on October 23, 2024 and sell it today you would earn a total of  0.94  from holding Bolt Projects Holdings, or generate 23.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Kellanova  vs.  Bolt Projects Holdings,

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.

Bolt Projects Holdings,

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Bolt Projects Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent forward-looking signals, Bolt Projects showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kellanova and Bolt Projects

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

The idea behind Kellanova and Bolt Projects Holdings, 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.