Correlation Between COFCO Joycome and MTY Food
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and MTY Food 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 COFCO Joycome and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and MTY Food Group, you can compare the effects of market volatilities on COFCO Joycome and MTY Food 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 COFCO Joycome with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and MTY Food.
Diversification Opportunities for COFCO Joycome and MTY Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COFCO and MTY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and MTY Food go up and down completely randomly.
Pair Corralation between COFCO Joycome and MTY Food
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the MTY Food. In addition to that, COFCO Joycome is 2.04 times more volatile than MTY Food Group. It trades about -0.01 of its total potential returns per unit of risk. MTY Food Group is currently generating about -0.02 per unit of volatility. If you would invest 4,583 in MTY Food Group on October 26, 2024 and sell it today you would lose (1,188) from holding MTY Food Group or give up 25.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COFCO Joycome Foods vs. MTY Food Group
Performance |
| Timeline |
| COFCO Joycome Foods |
| MTY Food Group |
COFCO Joycome and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and MTY Food
The main advantage of trading using opposite COFCO Joycome and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
| MTY Food vs. Host Hotels Resorts | MTY Food vs. Xenia Hotels Resorts | MTY Food vs. Pebblebrook Hotel Trust | MTY Food vs. COMPUTERSHARE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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