Correlation Between Kellanova and Qed Connect

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Can any of the company-specific risk be diversified away by investing in both Kellanova and Qed Connect 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 Qed Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellanova and Qed Connect, you can compare the effects of market volatilities on Kellanova and Qed Connect 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 Qed Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellanova and Qed Connect.

Diversification Opportunities for Kellanova and Qed Connect

KellanovaQedDiversified AwayKellanovaQedDiversified Away100%
-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Kellanova and Qed is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kellanova and Qed Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qed Connect 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 Qed Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qed Connect has no effect on the direction of Kellanova i.e., Kellanova and Qed Connect go up and down completely randomly.

Pair Corralation between Kellanova and Qed Connect

Taking into account the 90-day investment horizon Kellanova is expected to generate 24.21 times less return on investment than Qed Connect. But when comparing it to its historical volatility, Kellanova is 125.07 times less risky than Qed Connect. It trades about 0.22 of its potential returns per unit of risk. Qed Connect is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.04  in Qed Connect on November 21, 2024 and sell it today you would lose (0.02) from holding Qed Connect or give up 50.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.31%
ValuesDaily Returns

Kellanova  vs.  Qed Connect

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -80-60-40-200
JavaScript chart by amCharts 3.21.15K QEDN
       Timeline  
Kellanova 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Kellanova are ranked lower than 17 (%) 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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb8080.58181.58282.5
Qed Connect 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Qed Connect are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Qed Connect displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.000150.00020.000250.00030.000350.00040.000450.0005

Kellanova and Qed Connect Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.5-0.29-0.0974-0.04750.0025760.05410.130.340.550.76 24681012
JavaScript chart by amCharts 3.21.15K QEDN
       Returns  

Pair Trading with Kellanova and Qed Connect

The main advantage of trading using opposite Kellanova and Qed Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellanova position performs unexpectedly, Qed Connect 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 Qed Connect will offset losses from the drop in Qed Connect's long position.
The idea behind Kellanova and Qed Connect 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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