Correlation Between MTY Food and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both MTY Food and COFCO Joycome 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 MTY Food and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTY Food Group and COFCO Joycome Foods, you can compare the effects of market volatilities on MTY Food and COFCO Joycome 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 MTY Food with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and COFCO Joycome.
Diversification Opportunities for MTY Food and COFCO Joycome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MTY and COFCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and MTY Food 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 MTY Food Group are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of MTY Food i.e., MTY Food and COFCO Joycome go up and down completely randomly.
Pair Corralation between MTY Food and COFCO Joycome
Assuming the 90 days horizon MTY Food Group is expected to generate 0.49 times more return on investment than COFCO Joycome. However, MTY Food Group is 2.04 times less risky than COFCO Joycome. It trades about -0.02 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.01 per unit of risk. If you would invest 4,583 in MTY Food Group on October 27, 2024 and sell it today you would lose (1,188) from holding MTY Food Group or give up 25.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. COFCO Joycome Foods
Performance |
| Timeline |
| MTY Food Group |
| COFCO Joycome Foods |
MTY Food and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and COFCO Joycome
The main advantage of trading using opposite MTY Food and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| MTY Food vs. Host Hotels Resorts | MTY Food vs. Xenia Hotels Resorts | MTY Food vs. Pebblebrook Hotel Trust | MTY Food vs. COMPUTERSHARE |
| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |