Correlation Between MTY Food and THARISA NON
Can any of the company-specific risk be diversified away by investing in both MTY Food and THARISA NON 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 THARISA NON 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 THARISA NON LIST, you can compare the effects of market volatilities on MTY Food and THARISA NON 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 THARISA NON. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and THARISA NON.
Diversification Opportunities for MTY Food and THARISA NON
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTY and THARISA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and THARISA NON LIST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THARISA NON LIST 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 THARISA NON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THARISA NON LIST has no effect on the direction of MTY Food i.e., MTY Food and THARISA NON go up and down completely randomly.
Pair Corralation between MTY Food and THARISA NON
Assuming the 90 days horizon MTY Food Group is expected to generate 0.5 times more return on investment than THARISA NON. However, MTY Food Group is 1.98 times less risky than THARISA NON. It trades about -0.23 of its potential returns per unit of risk. THARISA NON LIST is currently generating about -0.22 per unit of risk. If you would invest 3,160 in MTY Food Group on October 16, 2024 and sell it today you would lose (165.00) from holding MTY Food Group or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. THARISA NON LIST
Performance |
| Timeline |
| MTY Food Group |
| THARISA NON LIST |
MTY Food and THARISA NON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and THARISA NON
The main advantage of trading using opposite MTY Food and THARISA NON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, THARISA NON 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 THARISA NON will offset losses from the drop in THARISA NON's long position.| MTY Food vs. Superior Plus Corp | MTY Food vs. NMI Holdings | MTY Food vs. SIVERS SEMICONDUCTORS AB | MTY Food vs. Talanx AG |
| THARISA NON vs. United States Steel | THARISA NON vs. MTY Food Group | THARISA NON vs. BG Foods | THARISA NON vs. PLANT VEDA FOODS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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