Correlation Between Freenet AG and CAL MAINE
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By analyzing existing cross correlation between freenet AG and CAL MAINE FOODS, you can compare the effects of market volatilities on Freenet AG and CAL MAINE 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 Freenet AG with a short position of CAL MAINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freenet AG and CAL MAINE.
Diversification Opportunities for Freenet AG and CAL MAINE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Freenet and CAL is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding freenet AG and CAL MAINE FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAL MAINE FOODS and Freenet AG 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 freenet AG are associated (or correlated) with CAL MAINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAL MAINE FOODS has no effect on the direction of Freenet AG i.e., Freenet AG and CAL MAINE go up and down completely randomly.
Pair Corralation between Freenet AG and CAL MAINE
Assuming the 90 days trading horizon Freenet AG is expected to generate 2.41 times less return on investment than CAL MAINE. But when comparing it to its historical volatility, freenet AG is 1.81 times less risky than CAL MAINE. It trades about 0.08 of its potential returns per unit of risk. CAL MAINE FOODS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,277 in CAL MAINE FOODS on September 3, 2024 and sell it today you would earn a total of 4,863 from holding CAL MAINE FOODS or generate 113.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
freenet AG vs. CAL MAINE FOODS
Performance |
| Timeline |
| freenet AG |
| CAL MAINE FOODS |
Freenet AG and CAL MAINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freenet AG and CAL MAINE
The main advantage of trading using opposite Freenet AG and CAL MAINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freenet AG position performs unexpectedly, CAL MAINE 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 CAL MAINE will offset losses from the drop in CAL MAINE's long position.| Freenet AG vs. CAL MAINE FOODS | Freenet AG vs. TYSON FOODS A | Freenet AG vs. LIFEWAY FOODS | Freenet AG vs. GOLD ROAD RES |
| CAL MAINE vs. LG Display Co | CAL MAINE vs. USWE SPORTS AB | CAL MAINE vs. SINGAPORE AIRLINES | CAL MAINE vs. VIAPLAY GROUP AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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