Correlation Between ConAgra Brands and Kellogg

By analyzing existing cross correlation between ConAgra Brands and Kellogg Company you can compare the effects of market volatilities on ConAgra Brands and Kellogg 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 ConAgra Brands with a short position of Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConAgra Brands and Kellogg.

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Can any of the company-specific risk be diversified away by investing in both ConAgra Brands and Kellogg at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing ConAgra Brands and Kellogg into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for ConAgra Brands and Kellogg

0.58
Correlation
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Very weak diversification

The 3 months correlation between ConAgra and Kellogg is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ConAgra Brands Inc and Kellogg Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kellogg Company and ConAgra Brands 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 ConAgra Brands are associated (or correlated) with Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellogg Company has no effect on the direction of ConAgra Brands i.e. ConAgra Brands and Kellogg go up and down completely randomly.

Pair Corralation between ConAgra Brands and Kellogg

Considering 30-days investment horizon, ConAgra Brands is expected to generate 1.17 times more return on investment than Kellogg. However, ConAgra Brands is 1.17 times more volatile than Kellogg Company. It trades about 0.1 of its potential returns per unit of risk. Kellogg Company is currently generating about 0.04 per unit of risk. If you would invest  2,752  in ConAgra Brands on May 7, 2020 and sell it today you would earn a total of  590.00  from holding ConAgra Brands or generate 21.44% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ConAgra Brands Inc  vs.  Kellogg Company

 Performance (%) 
      Timeline 
ConAgra Brands 
77

ConAgra Brands Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ConAgra Brands are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, ConAgra Brands exhibited solid returns over the last few months and may actually be approaching a breakup point.
Kellogg Company 
22

Kellogg Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kellogg Company are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly sluggish technical and fundamental indicators, Kellogg may actually be approaching a critical reversion point that can send shares even higher in July 2020.

ConAgra Brands and Kellogg Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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