Correlation Between Baselode Energy and MTY Food
Can any of the company-specific risk be diversified away by investing in both Baselode Energy 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 Baselode Energy and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baselode Energy Corp and MTY Food Group, you can compare the effects of market volatilities on Baselode Energy 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 Baselode Energy with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baselode Energy and MTY Food.
Diversification Opportunities for Baselode Energy and MTY Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baselode and MTY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baselode Energy Corp 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 Baselode Energy 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 Baselode Energy Corp 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 Baselode Energy i.e., Baselode Energy and MTY Food go up and down completely randomly.
Pair Corralation between Baselode Energy and MTY Food
Assuming the 90 days trading horizon Baselode Energy Corp is expected to generate 2.81 times more return on investment than MTY Food. However, Baselode Energy is 2.81 times more volatile than MTY Food Group. It trades about -0.01 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.14 per unit of risk. If you would invest 10.00 in Baselode Energy Corp on January 13, 2025 and sell it today you would lose (0.50) from holding Baselode Energy Corp or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baselode Energy Corp vs. MTY Food Group
Performance |
| Timeline |
| Baselode Energy Corp |
| MTY Food Group |
Baselode Energy and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baselode Energy and MTY Food
The main advantage of trading using opposite Baselode Energy and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baselode Energy 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.| Baselode Energy vs. Magna Mining | Baselode Energy vs. Nicola Mining | Baselode Energy vs. Verizon Communications CDR | Baselode Energy vs. Mako Mining Corp |
| MTY Food vs. Apple Inc CDR | MTY Food vs. Microsoft Corp CDR | MTY Food vs. NVIDIA CDR | MTY Food vs. Amazon CDR |
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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