Correlation Between Kroger and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both Kroger and Inter Parfums 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 Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kroger Company and Inter Parfums, you can compare the effects of market volatilities on Kroger and Inter Parfums 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 Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kroger and Inter Parfums.
Diversification Opportunities for Kroger and Inter Parfums
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kroger and Inter is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums 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 Kroger Company are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Kroger i.e., Kroger and Inter Parfums go up and down completely randomly.
Pair Corralation between Kroger and Inter Parfums
Allowing for the 90-day total investment horizon Kroger is expected to generate 3.91 times less return on investment than Inter Parfums. In addition to that, Kroger is 1.02 times more volatile than Inter Parfums. It trades about 0.05 of its total potential returns per unit of risk. Inter Parfums is currently generating about 0.2 per unit of volatility. If you would invest 10,784 in Inter Parfums on April 25, 2025 and sell it today you would earn a total of 2,438 from holding Inter Parfums or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kroger Company vs. Inter Parfums
Performance |
| Timeline |
| Kroger Company |
| Inter Parfums |
Kroger and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kroger and Inter Parfums
The main advantage of trading using opposite Kroger and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kroger position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Kroger vs. Albertsons Companies | Kroger vs. Krispy Kreme | Kroger vs. General Mills | Kroger vs. Grocery Outlet Holding |
| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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