Correlation Between MTY Food and Unity Software
Can any of the company-specific risk be diversified away by investing in both MTY Food and Unity Software 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 Unity Software 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 Unity Software, you can compare the effects of market volatilities on MTY Food and Unity Software 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 Unity Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Unity Software.
Diversification Opportunities for MTY Food and Unity Software
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MTY and Unity is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Unity Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unity Software 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 Unity Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unity Software has no effect on the direction of MTY Food i.e., MTY Food and Unity Software go up and down completely randomly.
Pair Corralation between MTY Food and Unity Software
Assuming the 90 days horizon MTY Food Group is expected to generate 0.5 times more return on investment than Unity Software. However, MTY Food Group is 1.99 times less risky than Unity Software. It trades about 0.34 of its potential returns per unit of risk. Unity Software is currently generating about -0.08 per unit of risk. If you would invest 3,090 in MTY Food Group on November 3, 2024 and sell it today you would earn a total of 390.00 from holding MTY Food Group or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. Unity Software
Performance |
| Timeline |
| MTY Food Group |
| Unity Software |
MTY Food and Unity Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Unity Software
The main advantage of trading using opposite MTY Food and Unity Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Unity Software 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 Unity Software will offset losses from the drop in Unity Software's long position.| MTY Food vs. MPH Health Care | MTY Food vs. WESANA HEALTH HOLD | MTY Food vs. Penta Ocean Construction Co | MTY Food vs. Australian Agricultural |
| Unity Software vs. Kingdee International Software | Unity Software vs. AGRICULTBK HADR25 YC | Unity Software vs. Penta Ocean Construction Co | Unity Software vs. Sunny Optical Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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