Correlation Between Chocoladefabriken and Macfarlane Group
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Macfarlane Group 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 Chocoladefabriken and Macfarlane Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Macfarlane Group PLC, you can compare the effects of market volatilities on Chocoladefabriken and Macfarlane Group 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 Chocoladefabriken with a short position of Macfarlane Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Macfarlane Group.
Diversification Opportunities for Chocoladefabriken and Macfarlane Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chocoladefabriken and Macfarlane is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Macfarlane Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macfarlane Group PLC and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Macfarlane Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macfarlane Group PLC has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Macfarlane Group go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Macfarlane Group
Assuming the 90 days trading horizon Chocoladefabriken is expected to generate 2.02 times less return on investment than Macfarlane Group. But when comparing it to its historical volatility, Chocoladefabriken Lindt Spruengli is 1.44 times less risky than Macfarlane Group. It trades about 0.01 of its potential returns per unit of risk. Macfarlane Group PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 10,030 in Macfarlane Group PLC on November 28, 2024 and sell it today you would earn a total of 720.00 from holding Macfarlane Group PLC or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.32% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Macfarlane Group PLC
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Macfarlane Group PLC |
Chocoladefabriken and Macfarlane Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Macfarlane Group
The main advantage of trading using opposite Chocoladefabriken and Macfarlane Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Macfarlane Group 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 Macfarlane Group will offset losses from the drop in Macfarlane Group's long position.| Chocoladefabriken vs. Aptitude Software Group | Chocoladefabriken vs. Polar Capital Technology | Chocoladefabriken vs. Spotify Technology SA | Chocoladefabriken vs. Micron Technology |
| Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Toyota Motor Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |