Correlation Between Chocoladefabriken and Moonpig Group
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Moonpig 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 Moonpig 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 Moonpig Group PLC, you can compare the effects of market volatilities on Chocoladefabriken and Moonpig 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 Moonpig Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Moonpig Group.
Diversification Opportunities for Chocoladefabriken and Moonpig Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chocoladefabriken and Moonpig is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Moonpig Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moonpig 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 Moonpig Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moonpig Group PLC has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Moonpig Group go up and down completely randomly.
Pair Corralation between Chocoladefabriken and Moonpig Group
Assuming the 90 days trading horizon Chocoladefabriken is expected to generate 11.61 times less return on investment than Moonpig Group. But when comparing it to its historical volatility, Chocoladefabriken Lindt Spruengli is 2.54 times less risky than Moonpig Group. It trades about 0.01 of its potential returns per unit of risk. Moonpig Group PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11,350 in Moonpig Group PLC on September 24, 2024 and sell it today you would earn a total of 10,750 from holding Moonpig Group PLC or generate 94.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.22% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. Moonpig Group PLC
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| Moonpig Group PLC |
Chocoladefabriken and Moonpig Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and Moonpig Group
The main advantage of trading using opposite Chocoladefabriken and Moonpig Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Moonpig 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 Moonpig Group will offset losses from the drop in Moonpig Group's long position.| Chocoladefabriken vs. Uniper SE | Chocoladefabriken vs. Mulberry Group PLC | Chocoladefabriken vs. London Security Plc | Chocoladefabriken vs. Triad Group PLC |
| Moonpig Group vs. Chocoladefabriken Lindt Spruengli | Moonpig Group vs. Rockwood Realisation PLC | Moonpig Group vs. Toyota Motor Corp | Moonpig Group vs. Johnson Matthey PLC |
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.
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