Correlation Between Coles and My Foodie
Can any of the company-specific risk be diversified away by investing in both Coles and My Foodie 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 Coles and My Foodie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coles Group and My Foodie Box, you can compare the effects of market volatilities on Coles and My Foodie 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 Coles with a short position of My Foodie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coles and My Foodie.
Diversification Opportunities for Coles and My Foodie
Pay attention - limited upside
The 3 months correlation between Coles and MBX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coles Group and My Foodie Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Foodie Box and Coles 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 Coles Group are associated (or correlated) with My Foodie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Foodie Box has no effect on the direction of Coles i.e., Coles and My Foodie go up and down completely randomly.
Pair Corralation between Coles and My Foodie
If you would invest 1,804 in Coles Group on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Coles Group or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coles Group vs. My Foodie Box
Performance |
| Timeline |
| Coles Group |
| My Foodie Box |
Coles and My Foodie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coles and My Foodie
The main advantage of trading using opposite Coles and My Foodie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coles position performs unexpectedly, My Foodie 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 My Foodie will offset losses from the drop in My Foodie's long position.| Coles vs. Aussie Broadband | Coles vs. Duxton Broadacre Farms | Coles vs. Regal Funds Management | Coles vs. EROAD |
| My Foodie vs. PVW Resources | My Foodie vs. Woolworths | My Foodie vs. Wesfarmers | My Foodie vs. Coles Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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