Correlation Between EcoSynthetix and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both EcoSynthetix and Maple Leaf 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 EcoSynthetix and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EcoSynthetix and Maple Leaf Foods, you can compare the effects of market volatilities on EcoSynthetix and Maple Leaf 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 EcoSynthetix with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of EcoSynthetix and Maple Leaf.
Diversification Opportunities for EcoSynthetix and Maple Leaf
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between EcoSynthetix and Maple is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding EcoSynthetix and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and EcoSynthetix 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 EcoSynthetix are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of EcoSynthetix i.e., EcoSynthetix and Maple Leaf go up and down completely randomly.
Pair Corralation between EcoSynthetix and Maple Leaf
Assuming the 90 days trading horizon EcoSynthetix is expected to generate 1.48 times more return on investment than Maple Leaf. However, EcoSynthetix is 1.48 times more volatile than Maple Leaf Foods. It trades about 0.01 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.01 per unit of risk. If you would invest 400.00 in EcoSynthetix on September 2, 2024 and sell it today you would lose (4.00) from holding EcoSynthetix or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EcoSynthetix vs. Maple Leaf Foods
Performance |
| Timeline |
| EcoSynthetix |
| Maple Leaf Foods |
EcoSynthetix and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EcoSynthetix and Maple Leaf
The main advantage of trading using opposite EcoSynthetix and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EcoSynthetix position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| EcoSynthetix vs. DIRTT Environmental Solutions | EcoSynthetix vs. 5N Plus | EcoSynthetix vs. Colabor Group | EcoSynthetix vs. TeraGo Inc |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |