Correlation Between Kraft Heinz and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Pro-blend(r) Moderate 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 Kraft Heinz and Pro-blend(r) Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Pro Blend Moderate Term, you can compare the effects of market volatilities on Kraft Heinz and Pro-blend(r) Moderate 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 Kraft Heinz with a short position of Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Pro-blend(r) Moderate.
Diversification Opportunities for Kraft Heinz and Pro-blend(r) Moderate
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kraft and Pro-blend(r) is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate and Kraft Heinz 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 Kraft Heinz Co are associated (or correlated) with Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between Kraft Heinz and Pro-blend(r) Moderate
Considering the 90-day investment horizon Kraft Heinz Co is expected to under-perform the Pro-blend(r) Moderate. In addition to that, Kraft Heinz is 3.13 times more volatile than Pro Blend Moderate Term. It trades about -0.01 of its total potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.07 per unit of volatility. If you would invest 1,261 in Pro Blend Moderate Term on May 1, 2025 and sell it today you would earn a total of 211.00 from holding Pro Blend Moderate Term or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Kraft Heinz |
| Pro-blend(r) Moderate |
Kraft Heinz and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Pro-blend(r) Moderate
The main advantage of trading using opposite Kraft Heinz and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| Pro-blend(r) Moderate vs. Pro Blend Servative Term | Pro-blend(r) Moderate vs. Pro Blend Maximum Term | Pro-blend(r) Moderate vs. Greenspring Fund Retail | Pro-blend(r) Moderate vs. Pro Blend Extended Term |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |