Correlation Between MTY Food and NIKKON HOLDINGS
Can any of the company-specific risk be diversified away by investing in both MTY Food and NIKKON HOLDINGS 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 NIKKON HOLDINGS 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 NIKKON HOLDINGS TD, you can compare the effects of market volatilities on MTY Food and NIKKON HOLDINGS 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 NIKKON HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and NIKKON HOLDINGS.
Diversification Opportunities for MTY Food and NIKKON HOLDINGS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTY and NIKKON is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and NIKKON HOLDINGS TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKKON HOLDINGS TD 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 NIKKON HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKON HOLDINGS TD has no effect on the direction of MTY Food i.e., MTY Food and NIKKON HOLDINGS go up and down completely randomly.
Pair Corralation between MTY Food and NIKKON HOLDINGS
Assuming the 90 days horizon MTY Food Group is expected to under-perform the NIKKON HOLDINGS. In addition to that, MTY Food is 1.66 times more volatile than NIKKON HOLDINGS TD. It trades about -0.23 of its total potential returns per unit of risk. NIKKON HOLDINGS TD is currently generating about 0.11 per unit of volatility. If you would invest 1,400 in NIKKON HOLDINGS TD on December 11, 2024 and sell it today you would earn a total of 60.00 from holding NIKKON HOLDINGS TD or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. NIKKON HOLDINGS TD
Performance |
| Timeline |
| MTY Food Group |
| NIKKON HOLDINGS TD |
MTY Food and NIKKON HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and NIKKON HOLDINGS
The main advantage of trading using opposite MTY Food and NIKKON HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, NIKKON HOLDINGS 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 NIKKON HOLDINGS will offset losses from the drop in NIKKON HOLDINGS's long position.| MTY Food vs. McDonalds | MTY Food vs. Starbucks | MTY Food vs. Starbucks | MTY Food vs. Chipotle Mexican Grill |
| NIKKON HOLDINGS vs. ZURICH INSURANCE GROUP | NIKKON HOLDINGS vs. INSURANCE AUST GRP | NIKKON HOLDINGS vs. Southern Cross Media | NIKKON HOLDINGS vs. Universal Insurance Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |