Correlation Between WK Kellogg and Cromwell Property

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

By analyzing existing cross correlation between WK Kellogg Co and Cromwell Property Group, you can compare the effects of market volatilities on WK Kellogg and Cromwell Property 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 WK Kellogg with a short position of Cromwell Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of WK Kellogg and Cromwell Property.

Diversification Opportunities for WK Kellogg and Cromwell Property

0.0

Correlation Coefficient

WK Kellogg  Cromwell Property

Pay attention - limited upside

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

Pair Corralation between WK Kellogg and Cromwell Property

If you would invest  1,777  in WK Kellogg Co on December 20, 2024 and sell it today you would earn a total of  111.00  from holding WK Kellogg Co or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

WK Kellogg Co  vs.  Cromwell Property Group

WK Kellogg

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WK Kellogg Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, WK Kellogg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cromwell Property

Risk-Adjusted Performance

Very Weak

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

Pair Trading with WK Kellogg and Cromwell Property

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

The idea behind WK Kellogg Co and Cromwell Property Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.