Correlation Between MTY Food and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both MTY Food and XTANT MEDICAL 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on MTY Food and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and XTANT MEDICAL.
Diversification Opportunities for MTY Food and XTANT MEDICAL
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTY and XTANT is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of MTY Food i.e., MTY Food and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between MTY Food and XTANT MEDICAL
Assuming the 90 days horizon MTY Food is expected to generate 1.94 times less return on investment than XTANT MEDICAL. But when comparing it to its historical volatility, MTY Food Group is 3.5 times less risky than XTANT MEDICAL. It trades about 0.05 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 47.00 in XTANT MEDICAL HLDGS on October 18, 2024 and sell it today you would earn a total of 0.00 from holding XTANT MEDICAL HLDGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| MTY Food Group |
| XTANT MEDICAL HLDGS |
MTY Food and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and XTANT MEDICAL
The main advantage of trading using opposite MTY Food and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| MTY Food vs. McDonalds | MTY Food vs. Starbucks | MTY Food vs. Chipotle Mexican Grill | MTY Food vs. Compass Group PLC |
| XTANT MEDICAL vs. RCI Hospitality Holdings | XTANT MEDICAL vs. SENECA FOODS A | XTANT MEDICAL vs. MTY Food Group | XTANT MEDICAL 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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