Correlation Between CREO MEDICAL and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL 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 CREO MEDICAL and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and Maple Leaf Foods, you can compare the effects of market volatilities on CREO MEDICAL 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 CREO MEDICAL with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and Maple Leaf.
Diversification Opportunities for CREO MEDICAL and Maple Leaf
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CREO and Maple is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP 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 CREO MEDICAL 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 CREO MEDICAL GRP 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 CREO MEDICAL i.e., CREO MEDICAL and Maple Leaf go up and down completely randomly.
Pair Corralation between CREO MEDICAL and Maple Leaf
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the Maple Leaf. In addition to that, CREO MEDICAL is 1.51 times more volatile than Maple Leaf Foods. It trades about -0.13 of its total potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.12 per unit of volatility. If you would invest 1,360 in Maple Leaf Foods on November 9, 2024 and sell it today you would earn a total of 70.00 from holding Maple Leaf Foods or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. Maple Leaf Foods
Performance |
| Timeline |
| CREO MEDICAL GRP |
| Maple Leaf Foods |
CREO MEDICAL and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and Maple Leaf
The main advantage of trading using opposite CREO MEDICAL and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL 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.| CREO MEDICAL vs. SERI INDUSTRIAL EO | CREO MEDICAL vs. Zijin Mining Group | CREO MEDICAL vs. Eastman Chemical | CREO MEDICAL vs. INDO RAMA SYNTHETIC |
| Maple Leaf vs. China Eastern Airlines | Maple Leaf vs. AEGEAN AIRLINES | Maple Leaf vs. Tyson Foods | Maple Leaf vs. Aegean Airlines SA |
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.
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