Correlation Between Electra Battery and MTY Food
Can any of the company-specific risk be diversified away by investing in both Electra Battery 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 Electra Battery and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electra Battery Materials and MTY Food Group, you can compare the effects of market volatilities on Electra Battery 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 Electra Battery with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Battery and MTY Food.
Diversification Opportunities for Electra Battery and MTY Food
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electra and MTY is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials 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 Electra Battery 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 Electra Battery Materials 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 Electra Battery i.e., Electra Battery and MTY Food go up and down completely randomly.
Pair Corralation between Electra Battery and MTY Food
Assuming the 90 days trading horizon Electra Battery Materials is expected to under-perform the MTY Food. In addition to that, Electra Battery is 1.72 times more volatile than MTY Food Group. It trades about -0.1 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.21 per unit of volatility. If you would invest 4,447 in MTY Food Group on September 1, 2024 and sell it today you would earn a total of 328.00 from holding MTY Food Group or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra Battery Materials vs. MTY Food Group
Performance |
| Timeline |
| Electra Battery Materials |
| MTY Food Group |
Electra Battery and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra Battery and MTY Food
The main advantage of trading using opposite Electra Battery and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery 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.| Electra Battery vs. Frontier Lithium | Electra Battery vs. Electra Battery Materials | Electra Battery vs. E3 Lithium | Electra Battery vs. Canada Nickel |
| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |