Correlation Between Kraft Heinz and Blue Star

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

By analyzing existing cross correlation between Kraft Heinz Co and Blue Star Foods, you can compare the effects of market volatilities on Kraft Heinz and Blue Star 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 Kraft Heinz with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Blue Star.

Diversification Opportunities for Kraft Heinz and Blue Star

0.0

Correlation Coefficient

Kraft Heinz  Blue Star

Pay attention - limited upside

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

Pair Corralation between Kraft Heinz and Blue Star

If you would invest  3,077  in Kraft Heinz Co on December 2, 2024 and sell it today you would lose (6.00) from holding Kraft Heinz Co or give up 0.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kraft Heinz Co  vs.  Blue Star Foods

Kraft Heinz

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kraft Heinz Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Kraft Heinz is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Blue Star Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Star Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Blue Star is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Kraft Heinz and Blue Star

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

The idea behind Kraft Heinz Co and Blue Star Foods 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.