Correlation Between COFCO Joycome and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on COFCO Joycome and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Maple Leaf.
Diversification Opportunities for COFCO Joycome and Maple Leaf
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COFCO and Maple is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Maple Leaf go up and down completely randomly.
Pair Corralation between COFCO Joycome and Maple Leaf
If you would invest 1,380 in Maple Leaf Foods on November 4, 2024 and sell it today you would earn a total of 30.00 from holding Maple Leaf Foods or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Maple Leaf Foods
Performance |
| Timeline |
| COFCO Joycome Foods |
| Maple Leaf Foods |
COFCO Joycome and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Maple Leaf
The main advantage of trading using opposite COFCO Joycome and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| COFCO Joycome vs. Nestl SA | COFCO Joycome vs. Kraft Heinz Co | COFCO Joycome vs. General Mills | COFCO Joycome vs. General Mills |
| Maple Leaf vs. Australian Agricultural | Maple Leaf vs. Sumitomo Mitsui Construction | Maple Leaf vs. NTG Nordic Transport | Maple Leaf vs. China Railway Construction |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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