Correlation Between Nomad Foods and MidCap Financial
Can any of the company-specific risk be diversified away by investing in both Nomad Foods and MidCap Financial 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 Nomad Foods and MidCap Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomad Foods and MidCap Financial Investment, you can compare the effects of market volatilities on Nomad Foods and MidCap Financial 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 Nomad Foods with a short position of MidCap Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and MidCap Financial.
Diversification Opportunities for Nomad Foods and MidCap Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nomad and MidCap is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and MidCap Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MidCap Financial Inv and Nomad Foods 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 Nomad Foods are associated (or correlated) with MidCap Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MidCap Financial Inv has no effect on the direction of Nomad Foods i.e., Nomad Foods and MidCap Financial go up and down completely randomly.
Pair Corralation between Nomad Foods and MidCap Financial
Assuming the 90 days trading horizon Nomad Foods is expected to generate 7.23 times less return on investment than MidCap Financial. In addition to that, Nomad Foods is 1.34 times more volatile than MidCap Financial Investment. It trades about 0.01 of its total potential returns per unit of risk. MidCap Financial Investment is currently generating about 0.07 per unit of volatility. If you would invest 860.00 in MidCap Financial Investment on October 13, 2024 and sell it today you would earn a total of 405.00 from holding MidCap Financial Investment or generate 47.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomad Foods vs. MidCap Financial Investment
Performance |
| Timeline |
| Nomad Foods |
| MidCap Financial Inv |
Nomad Foods and MidCap Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and MidCap Financial
The main advantage of trading using opposite Nomad Foods and MidCap Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods position performs unexpectedly, MidCap Financial 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 MidCap Financial will offset losses from the drop in MidCap Financial's long position.| Nomad Foods vs. COSMOSTEEL HLDGS | Nomad Foods vs. DENTSPLY SIRONA | Nomad Foods vs. Luckin Coffee | Nomad Foods vs. AGRICULTBK HADR25 YC |
| MidCap Financial vs. Perseus Mining Limited | MidCap Financial vs. MTY Food Group | MidCap Financial vs. Nomad Foods | MidCap Financial vs. SENECA FOODS A |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |