Correlation Between Cal Maine and MICRONIC MYDATA

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Can any of the company-specific risk be diversified away by investing in both Cal Maine and MICRONIC MYDATA 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 and MICRONIC MYDATA 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 MICRONIC MYDATA, you can compare the effects of market volatilities on Cal Maine and MICRONIC MYDATA 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 with a short position of MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Maine and MICRONIC MYDATA.

Diversification Opportunities for Cal Maine and MICRONIC MYDATA

CalMICRONICDiversified AwayCalMICRONICDiversified Away100%
-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Cal and MICRONIC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA and Cal Maine 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of Cal Maine i.e., Cal Maine and MICRONIC MYDATA go up and down completely randomly.

Pair Corralation between Cal Maine and MICRONIC MYDATA

Assuming the 90 days trading horizon Cal Maine Foods is expected to under-perform the MICRONIC MYDATA. In addition to that, Cal Maine is 1.29 times more volatile than MICRONIC MYDATA. It trades about -0.31 of its total potential returns per unit of risk. MICRONIC MYDATA is currently generating about 0.17 per unit of volatility. If you would invest  3,722  in MICRONIC MYDATA on November 30, 2024 and sell it today you would earn a total of  344.00  from holding MICRONIC MYDATA or generate 9.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Cal Maine Foods  vs.  MICRONIC MYDATA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0102030
JavaScript chart by amCharts 3.21.15CM2 MLT
       Timeline  
Cal Maine Foods 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cal Maine Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cal Maine is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb859095100105110
MICRONIC MYDATA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MICRONIC MYDATA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, MICRONIC MYDATA exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb343638404244

Cal Maine and MICRONIC MYDATA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.75-3.56-2.37-1.17-0.01961.142.323.494.675.85 0.040.050.060.070.08
JavaScript chart by amCharts 3.21.15CM2 MLT
       Returns  

Pair Trading with Cal Maine and MICRONIC MYDATA

The main advantage of trading using opposite Cal Maine and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.
The idea behind Cal Maine Foods and MICRONIC MYDATA 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.
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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