Correlation Between Cal Maine and SIKA AG
Can any of the company-specific risk be diversified away by investing in both Cal Maine and SIKA AG 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 SIKA AG 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 SIKA AG UNSPADR, you can compare the effects of market volatilities on Cal Maine and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Maine and SIKA AG.
Diversification Opportunities for Cal Maine and SIKA AG
Pay attention - limited upside
The 3 months correlation between Cal and SIKA is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of Cal Maine i.e., Cal Maine and SIKA AG go up and down completely randomly.
Pair Corralation between Cal Maine and SIKA AG
Assuming the 90 days trading horizon Cal Maine Foods is expected to generate 1.21 times more return on investment than SIKA AG. However, Cal Maine is 1.21 times more volatile than SIKA AG UNSPADR. It trades about 0.17 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about 0.01 per unit of risk. If you would invest 4,835 in Cal Maine Foods on October 27, 2024 and sell it today you would earn a total of 5,725 from holding Cal Maine Foods or generate 118.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cal Maine Foods vs. SIKA AG UNSPADR
Performance |
| Timeline |
| Cal Maine Foods |
| SIKA AG UNSPADR |
Cal Maine and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Maine and SIKA AG
The main advantage of trading using opposite Cal Maine and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Maine position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| Cal Maine vs. Cogent Communications Holdings | Cal Maine vs. SOCKET MOBILE NEW | Cal Maine vs. Gaming and Leisure | Cal Maine vs. CONTAGIOUS GAMING INC |
| SIKA AG vs. Caseys General Stores | SIKA AG vs. AEON STORES | SIKA AG vs. 24SEVENOFFICE GROUP AB | SIKA AG vs. NURAN WIRELESS INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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