Correlation Between DETALION GAMES and MTY Food
Can any of the company-specific risk be diversified away by investing in both DETALION GAMES and MTY Food 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 DETALION GAMES and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DETALION GAMES SA and MTY Food Group, you can compare the effects of market volatilities on DETALION GAMES and MTY Food 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 DETALION GAMES with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of DETALION GAMES and MTY Food.
Diversification Opportunities for DETALION GAMES and MTY Food
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DETALION and MTY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DETALION GAMES SA and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and DETALION GAMES 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 DETALION GAMES SA are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of DETALION GAMES i.e., DETALION GAMES and MTY Food go up and down completely randomly.
Pair Corralation between DETALION GAMES and MTY Food
Assuming the 90 days horizon DETALION GAMES SA is expected to under-perform the MTY Food. In addition to that, DETALION GAMES is 2.73 times more volatile than MTY Food Group. It trades about -0.01 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.13 per unit of volatility. If you would invest 2,987 in MTY Food Group on October 26, 2024 and sell it today you would earn a total of 378.00 from holding MTY Food Group or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DETALION GAMES SA vs. MTY Food Group
Performance |
| Timeline |
| DETALION GAMES SA |
| MTY Food Group |
DETALION GAMES and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DETALION GAMES and MTY Food
The main advantage of trading using opposite DETALION GAMES and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DETALION GAMES position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| DETALION GAMES vs. Clean Energy Fuels | DETALION GAMES vs. Costco Wholesale Corp | DETALION GAMES vs. FIREWEED METALS P | DETALION GAMES vs. ULTRA CLEAN HLDGS |
| MTY Food vs. Globex Mining Enterprises | MTY Food vs. STEEL DYNAMICS | MTY Food vs. NXP Semiconductors NV | MTY Food vs. MOUNT GIBSON IRON |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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