Correlation Between Autosports and My Foodie
Can any of the company-specific risk be diversified away by investing in both Autosports and My Foodie 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 Autosports and My Foodie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and My Foodie Box, you can compare the effects of market volatilities on Autosports and My Foodie 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 Autosports with a short position of My Foodie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and My Foodie.
Diversification Opportunities for Autosports and My Foodie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autosports and MBX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and My Foodie Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Foodie Box and Autosports 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 Autosports Group are associated (or correlated) with My Foodie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Foodie Box has no effect on the direction of Autosports i.e., Autosports and My Foodie go up and down completely randomly.
Pair Corralation between Autosports and My Foodie
Assuming the 90 days trading horizon Autosports Group is expected to generate 0.38 times more return on investment than My Foodie. However, Autosports Group is 2.65 times less risky than My Foodie. It trades about 0.02 of its potential returns per unit of risk. My Foodie Box is currently generating about -0.06 per unit of risk. If you would invest 167.00 in Autosports Group on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Autosports Group or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. My Foodie Box
Performance |
| Timeline |
| Autosports Group |
| My Foodie Box |
Autosports and My Foodie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and My Foodie
The main advantage of trading using opposite Autosports and My Foodie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, My Foodie 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 My Foodie will offset losses from the drop in My Foodie's long position.| Autosports vs. Westpac Banking | Autosports vs. Champion Iron | Autosports vs. iShares Global Healthcare | Autosports vs. Peel Mining |
| My Foodie vs. Cooper Metals | My Foodie vs. OD6 Metals | My Foodie vs. SportsHero | My Foodie vs. Champion 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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