Correlation Between Kraft Heinz and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Emerging Markets 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 Emerging Markets 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 Emerging Markets Portfolio, you can compare the effects of market volatilities on Kraft Heinz and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Emerging Markets.
Diversification Opportunities for Kraft Heinz and Emerging Markets
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kraft and Emerging is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Emerging Markets go up and down completely randomly.
Pair Corralation between Kraft Heinz and Emerging Markets
Considering the 90-day investment horizon Kraft Heinz is expected to generate 6.48 times less return on investment than Emerging Markets. In addition to that, Kraft Heinz is 1.93 times more volatile than Emerging Markets Portfolio. It trades about 0.02 of its total potential returns per unit of risk. Emerging Markets Portfolio is currently generating about 0.29 per unit of volatility. If you would invest 2,129 in Emerging Markets Portfolio on April 26, 2025 and sell it today you would earn a total of 297.00 from holding Emerging Markets Portfolio or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Kraft Heinz |
| Emerging Markets Por |
Kraft Heinz and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Emerging Markets
The main advantage of trading using opposite Kraft Heinz and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| Emerging Markets vs. T Rowe Price | Emerging Markets vs. Lord Abbett Diversified | Emerging Markets vs. Principal Lifetime Hybrid | Emerging Markets vs. Wilmington Diversified Income |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |