Correlation Between Kellanova and Onconetix

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

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

Diversification Opportunities for Kellanova and Onconetix

-0.56

Correlation Coefficient

Kellanova  Onconetix

Excellent diversification

The 3 months correlation between Kellanova and Onconetix is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Onconetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconetix 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 Onconetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconetix has no effect on the direction of Kellanova i.e., Kellanova and Onconetix go up and down completely randomly.

Pair Corralation between Kellanova and Onconetix

Taking into account the 90-day investment horizon Kellanova is expected to generate 6.05 times less return on investment than Onconetix. But when comparing it to its historical volatility, Kellanova is 81.56 times less risky than Onconetix. It trades about 0.27 of its potential returns per unit of risk. Onconetix is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  64.00  in Onconetix on October 11, 2024 and sell it today you would lose (9.00) from holding Onconetix or give up 14.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kellanova  vs.  Onconetix

Kellanova

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kellanova are ranked lower than 12 (%) 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.

Onconetix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Onconetix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Kellanova and Onconetix

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

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