Correlation Between Kerry Logistics and Meta Platforms

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

By analyzing existing cross correlation between Kerry Logistics Network and Meta Platforms, you can compare the effects of market volatilities on Kerry Logistics and Meta Platforms 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 Kerry Logistics with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry Logistics and Meta Platforms.

Diversification Opportunities for Kerry Logistics and Meta Platforms

-0.33

Correlation Coefficient

Kerry Logistics  Meta Platforms

Very good diversification

The 3 months correlation between Kerry and Meta is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kerry Logistics Network and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Kerry Logistics 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 Kerry Logistics Network are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Kerry Logistics i.e., Kerry Logistics and Meta Platforms go up and down completely randomly.

Pair Corralation between Kerry Logistics and Meta Platforms

Assuming the 90 days horizon Kerry Logistics Network is expected to under-perform the Meta Platforms. In addition to that, Kerry Logistics is 1.23 times more volatile than Meta Platforms. It trades about -0.13 of its total potential returns per unit of risk. Meta Platforms is currently generating about 0.01 per unit of volatility. If you would invest  59,928  in Meta Platforms on December 27, 2024 and sell it today you would earn a total of  323.00  from holding Meta Platforms or generate 0.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Kerry Logistics Network  vs.  Meta Platforms

Kerry Logistics Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kerry Logistics Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Meta Platforms

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Meta Platforms are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Meta Platforms is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kerry Logistics and Meta Platforms

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

The idea behind Kerry Logistics Network and Meta Platforms 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.