Correlation Between Nomad Foods and Meta Platforms
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By analyzing existing cross correlation between Nomad Foods and Meta Platforms, you can compare the effects of market volatilities on Nomad Foods and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and Meta Platforms.
Diversification Opportunities for Nomad Foods and Meta Platforms
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nomad and Meta is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Nomad Foods i.e., Nomad Foods and Meta Platforms go up and down completely randomly.
Pair Corralation between Nomad Foods and Meta Platforms
Assuming the 90 days trading horizon Nomad Foods is expected to generate 1.13 times more return on investment than Meta Platforms. However, Nomad Foods is 1.13 times more volatile than Meta Platforms. It trades about 0.21 of its potential returns per unit of risk. Meta Platforms is currently generating about 0.11 per unit of risk. If you would invest 1,575 in Nomad Foods on September 2, 2024 and sell it today you would earn a total of 125.00 from holding Nomad Foods or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomad Foods vs. Meta Platforms
Performance |
| Timeline |
| Nomad Foods |
| Meta Platforms |
Nomad Foods and Meta Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and Meta Platforms
The main advantage of trading using opposite Nomad Foods and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.| Nomad Foods vs. Apple Inc | Nomad Foods vs. Apple Inc | Nomad Foods vs. Apple Inc | Nomad Foods vs. Apple Inc |
| Meta Platforms vs. Siamgas And Petrochemicals | Meta Platforms vs. NISSAN CHEMICAL IND | Meta Platforms vs. SEKISUI CHEMICAL | Meta Platforms vs. Waste Management |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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