Correlation Between Cal-Maine Foods and Easy Software
Can any of the company-specific risk be diversified away by investing in both Cal-Maine Foods and Easy 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 Cal-Maine Foods and Easy Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Maine Foods and Easy Software AG, you can compare the effects of market volatilities on Cal-Maine Foods and Easy 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 Cal-Maine Foods with a short position of Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Maine Foods and Easy Software.
Diversification Opportunities for Cal-Maine Foods and Easy Software
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cal-Maine and Easy is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG and Cal-Maine 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 Cal Maine Foods are associated (or correlated) with Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of Cal-Maine Foods i.e., Cal-Maine Foods and Easy Software go up and down completely randomly.
Pair Corralation between Cal-Maine Foods and Easy Software
Assuming the 90 days trading horizon Cal Maine Foods is expected to generate 0.97 times more return on investment than Easy Software. However, Cal Maine Foods is 1.03 times less risky than Easy Software. It trades about 0.09 of its potential returns per unit of risk. Easy Software AG is currently generating about 0.03 per unit of risk. If you would invest 4,672 in Cal Maine Foods on December 12, 2024 and sell it today you would earn a total of 2,916 from holding Cal Maine Foods or generate 62.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Maine Foods vs. Easy Software AG
Performance |
| Timeline |
| Cal Maine Foods |
| Easy Software AG |
Cal-Maine Foods and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal-Maine Foods and Easy Software
The main advantage of trading using opposite Cal-Maine Foods and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal-Maine Foods position performs unexpectedly, Easy 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 Easy Software will offset losses from the drop in Easy Software's long position.| Cal-Maine Foods vs. ASPEN TECHINC DL | ||
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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