Correlation Between SEVEN+I HLDGS and Kroger

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

By analyzing existing cross correlation between SEVENI HLDGS UNSPADR12 and The Kroger Co, you can compare the effects of market volatilities on SEVEN+I HLDGS and Kroger 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 SEVEN+I HLDGS with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEVEN+I HLDGS and Kroger.

Diversification Opportunities for SEVEN+I HLDGS and Kroger

-0.52

Correlation Coefficient

SEVEN+I HLDGS  Kroger

Excellent diversification

The 3 months correlation between SEVEN+I and Kroger is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SEVENI HLDGS UNSPADR12 and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger and SEVEN+I HLDGS 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 SEVENI HLDGS UNSPADR12 are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of SEVEN+I HLDGS i.e., SEVEN+I HLDGS and Kroger go up and down completely randomly.

Pair Corralation between SEVEN+I HLDGS and Kroger

If you would invest  5,618  in The Kroger Co on September 13, 2024 and sell it today you would earn a total of  125.00  from holding The Kroger Co or generate 2.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

SEVENI HLDGS UNSPADR12  vs.  The Kroger Co

SEVENI HLDGS UNSPADR12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEVENI HLDGS UNSPADR12 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, SEVEN+I HLDGS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

The Kroger

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Kroger Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Kroger reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEVEN+I HLDGS and Kroger

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

The idea behind SEVENI HLDGS UNSPADR12 and The Kroger Co 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.