Correlation Between Superior Plus and MTY Food
Can any of the company-specific risk be diversified away by investing in both Superior Plus and MTY Food 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 Superior Plus and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and MTY Food Group, you can compare the effects of market volatilities on Superior Plus and MTY Food 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 Superior Plus with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and MTY Food.
Diversification Opportunities for Superior Plus and MTY Food
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and MTY is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and Superior Plus 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 Superior Plus Corp are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Superior Plus i.e., Superior Plus and MTY Food go up and down completely randomly.
Pair Corralation between Superior Plus and MTY Food
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.61 times more return on investment than MTY Food. However, Superior Plus is 1.61 times more volatile than MTY Food Group. It trades about -0.06 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.24 per unit of risk. If you would invest 439.00 in Superior Plus Corp on October 12, 2024 and sell it today you would lose (11.00) from holding Superior Plus Corp or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. MTY Food Group
Performance |
| Timeline |
| Superior Plus Corp |
| MTY Food Group |
Superior Plus and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and MTY Food
The main advantage of trading using opposite Superior Plus and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Superior Plus vs. Brockhaus Capital Management | Superior Plus vs. NTT DATA | Superior Plus vs. Data Modul AG | Superior Plus vs. Waste Management |
| MTY Food vs. Superior Plus Corp | MTY Food vs. NMI Holdings | MTY Food vs. SIVERS SEMICONDUCTORS AB | MTY Food vs. Talanx AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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