Correlation Between BUA FOODS and MULTI TREX
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By analyzing existing cross correlation between BUA FOODS PLC and MULTI TREX INTEGRATED FOODS, you can compare the effects of market volatilities on BUA FOODS and MULTI TREX 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 BUA FOODS with a short position of MULTI TREX. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and MULTI TREX.
Diversification Opportunities for BUA FOODS and MULTI TREX
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BUA and MULTI is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and MULTI TREX INTEGRATED FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI TREX INTEGRATED and BUA FOODS 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 BUA FOODS PLC are associated (or correlated) with MULTI TREX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI TREX INTEGRATED has no effect on the direction of BUA FOODS i.e., BUA FOODS and MULTI TREX go up and down completely randomly.
Pair Corralation between BUA FOODS and MULTI TREX
If you would invest 19,890 in BUA FOODS PLC on September 2, 2024 and sell it today you would earn a total of 19,600 from holding BUA FOODS PLC or generate 98.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. MULTI TREX INTEGRATED FOODS
Performance |
| Timeline |
| BUA FOODS PLC |
| MULTI TREX INTEGRATED |
BUA FOODS and MULTI TREX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and MULTI TREX
The main advantage of trading using opposite BUA FOODS and MULTI TREX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, MULTI TREX 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 MULTI TREX will offset losses from the drop in MULTI TREX's long position.The idea behind BUA FOODS PLC and MULTI TREX INTEGRATED FOODS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MULTI TREX vs. CHAMPION BREWERIES PLC | MULTI TREX vs. INTERNATIONAL BREWERIES PLC | MULTI TREX vs. STACO INSURANCE PLC | MULTI TREX vs. STERLING FINANCIAL HOLDINGS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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