Correlation Between Freshpet and Kellanova
Can any of the company-specific risk be diversified away by investing in both Freshpet and Kellanova 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 Freshpet and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freshpet and Kellanova, you can compare the effects of market volatilities on Freshpet and Kellanova 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 Freshpet with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freshpet and Kellanova.
Diversification Opportunities for Freshpet and Kellanova
Weak diversification
The 3 months correlation between Freshpet and Kellanova is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Freshpet and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Freshpet 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 Freshpet are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Freshpet i.e., Freshpet and Kellanova go up and down completely randomly.
Pair Corralation between Freshpet and Kellanova
Given the investment horizon of 90 days Freshpet is expected to generate 2.19 times more return on investment than Kellanova. However, Freshpet is 2.19 times more volatile than Kellanova. It trades about 0.07 of its potential returns per unit of risk. Kellanova is currently generating about -0.03 per unit of risk. If you would invest 5,905 in Freshpet on January 19, 2024 and sell it today you would earn a total of 4,460 from holding Freshpet or generate 75.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freshpet vs. Kellanova
Performance |
| Timeline |
| Freshpet |
| Kellanova |
Freshpet and Kellanova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freshpet and Kellanova
The main advantage of trading using opposite Freshpet and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freshpet position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.| Freshpet vs. Central Garden Pet | Freshpet vs. Central Garden Pet | Freshpet vs. The A2 Milk | Freshpet vs. Altavoz Entertainment |
| Kellanova vs. Central Garden Pet | Kellanova vs. Central Garden Pet | Kellanova vs. The A2 Milk | Kellanova vs. Altavoz Entertainment |
Check out your portfolio center.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |