Correlation Between VARIOUS EATERIES and Marks
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and Marks 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 VARIOUS EATERIES and Marks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and Marks and Spencer, you can compare the effects of market volatilities on VARIOUS EATERIES and Marks 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 VARIOUS EATERIES with a short position of Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and Marks.
Diversification Opportunities for VARIOUS EATERIES and Marks
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VARIOUS and Marks is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and Marks go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and Marks
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the Marks. In addition to that, VARIOUS EATERIES is 1.64 times more volatile than Marks and Spencer. It trades about -0.12 of its total potential returns per unit of risk. Marks and Spencer is currently generating about -0.11 per unit of volatility. If you would invest 474.00 in Marks and Spencer on October 10, 2024 and sell it today you would lose (13.00) from holding Marks and Spencer or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. Marks and Spencer
Performance |
| Timeline |
| VARIOUS EATERIES |
| Marks and Spencer |
VARIOUS EATERIES and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and Marks
The main advantage of trading using opposite VARIOUS EATERIES and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' long position.| VARIOUS EATERIES vs. Superior Plus Corp | VARIOUS EATERIES vs. NMI Holdings | VARIOUS EATERIES vs. SIVERS SEMICONDUCTORS AB | VARIOUS EATERIES vs. Talanx AG |
| Marks vs. MIRAMAR HOTEL INV | Marks vs. TRADEDOUBLER AB SK | Marks vs. Fast Retailing Co | Marks vs. Choice Hotels International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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