Correlation Between Gr Sarantis and Kri Kri

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

By analyzing existing cross correlation between Gr Sarantis SA and Kri Kri Milk Industry, you can compare the effects of market volatilities on Gr Sarantis and Kri Kri 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 Gr Sarantis with a short position of Kri Kri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gr Sarantis and Kri Kri.

Diversification Opportunities for Gr Sarantis and Kri Kri

0.16

Correlation Coefficient

Gr Sarantis  Kri Kri

Average diversification

The 3 months correlation between SAR and Kri is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gr Sarantis SA and Kri Kri Milk Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kri Kri Milk and Gr Sarantis 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 Gr Sarantis SA are associated (or correlated) with Kri Kri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kri Kri Milk has no effect on the direction of Gr Sarantis i.e., Gr Sarantis and Kri Kri go up and down completely randomly.

Pair Corralation between Gr Sarantis and Kri Kri

Assuming the 90 days trading horizon Gr Sarantis SA is expected to generate 1.05 times more return on investment than Kri Kri. However, Gr Sarantis is 1.05 times more volatile than Kri Kri Milk Industry. It trades about 0.19 of its potential returns per unit of risk. Kri Kri Milk Industry is currently generating about 0.2 per unit of risk. If you would invest  1,090  in Gr Sarantis SA on October 26, 2024 and sell it today you would earn a total of  52.00  from holding Gr Sarantis SA or generate 4.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Gr Sarantis SA  vs.  Kri Kri Milk Industry

Gr Sarantis SA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gr Sarantis SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Gr Sarantis is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Kri Kri Milk

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kri Kri Milk Industry are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Kri Kri may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Gr Sarantis and Kri Kri

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

The idea behind Gr Sarantis SA and Kri Kri Milk Industry 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.