Correlation Between Kroger and Vibra Energia

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

By analyzing existing cross correlation between The Kroger Co and Vibra Energia SA, you can compare the effects of market volatilities on Kroger and Vibra Energia 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 Vibra Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and Vibra Energia.

Diversification Opportunities for Kroger and Vibra Energia

-0.5

Correlation Coefficient

Kroger  Vibra Energia

Very good diversification

The 3 months correlation between Kroger and Vibra is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Kroger Co and Vibra Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibra Energia SA 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 The Kroger Co are associated (or correlated) with Vibra Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibra Energia SA has no effect on the direction of Kroger i.e., Kroger and Vibra Energia go up and down completely randomly.

Pair Corralation between Kroger and Vibra Energia

Assuming the 90 days trading horizon Kroger is expected to generate 4.23 times less return on investment than Vibra Energia. In addition to that, Kroger is 1.18 times more volatile than Vibra Energia SA. It trades about 0.01 of its total potential returns per unit of risk. Vibra Energia SA is currently generating about 0.06 per unit of volatility. If you would invest  1,894  in Vibra Energia SA on April 24, 2025 and sell it today you would earn a total of  105.00  from holding Vibra Energia SA or generate 5.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

The Kroger Co  vs.  Vibra Energia SA

The Kroger

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Kroger Co 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 recent stock price disturbance, may contribute to short-term losses for the investors.

Vibra Energia SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vibra Energia SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Vibra Energia is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kroger and Vibra Energia

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

The idea behind The Kroger Co and Vibra Energia SA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.