Correlation Between KROGER and ReTo Eco

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

By analyzing existing cross correlation between KROGER 54 percent and ReTo Eco Solutions, you can compare the effects of market volatilities on KROGER and ReTo Eco 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 KROGER with a short position of ReTo Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and ReTo Eco.

Diversification Opportunities for KROGER and ReTo Eco

0.0

Correlation Coefficient

KROGER  ReTo Eco

Pay attention - limited upside

The 3 months correlation between KROGER and ReTo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 54 percent and ReTo Eco Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReTo Eco Solutions and KROGER 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 KROGER 54 percent are associated (or correlated) with ReTo Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReTo Eco Solutions has no effect on the direction of KROGER i.e., KROGER and ReTo Eco go up and down completely randomly.

Pair Corralation between KROGER and ReTo Eco

If you would invest  0.00  in KROGER 54 percent on October 20, 2024 and sell it today you would earn a total of  0.00  from holding KROGER 54 percent or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

KROGER 54 percent  vs.  ReTo Eco Solutions

KROGER 54 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KROGER 54 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, KROGER is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ReTo Eco Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ReTo Eco Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with KROGER and ReTo Eco

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

The idea behind KROGER 54 percent and ReTo Eco Solutions 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.