Correlation Between Carnegie Clean and MTY Food
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and MTY Food 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 Carnegie Clean and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and MTY Food Group, you can compare the effects of market volatilities on Carnegie Clean and MTY Food 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 Carnegie Clean with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and MTY Food.
Diversification Opportunities for Carnegie Clean and MTY Food
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carnegie and MTY is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and Carnegie Clean 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 Carnegie Clean Energy are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and MTY Food go up and down completely randomly.
Pair Corralation between Carnegie Clean and MTY Food
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the MTY Food. In addition to that, Carnegie Clean is 2.29 times more volatile than MTY Food Group. It trades about -0.05 of its total potential returns per unit of risk. MTY Food Group is currently generating about -0.1 per unit of volatility. If you would invest 3,245 in MTY Food Group on October 10, 2024 and sell it today you would lose (80.00) from holding MTY Food Group or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. MTY Food Group
Performance |
| Timeline |
| Carnegie Clean Energy |
| MTY Food Group |
Carnegie Clean and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and MTY Food
The main advantage of trading using opposite Carnegie Clean and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Carnegie Clean vs. Reinsurance Group of | Carnegie Clean vs. Japan Asia Investment | Carnegie Clean vs. CHRYSALIS INVESTMENTS LTD | Carnegie Clean vs. Virtus Investment Partners |
| MTY Food vs. NTT DATA | MTY Food vs. Geely Automobile Holdings | MTY Food vs. Information Services International Dentsu | MTY Food vs. Cass Information Systems |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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