Correlation Between ISign Media and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both ISign Media 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 ISign Media and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSign Media Solutions and Maple Leaf Foods, you can compare the effects of market volatilities on ISign Media 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 ISign Media with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISign Media and Maple Leaf.
Diversification Opportunities for ISign Media and Maple Leaf
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ISign and Maple is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding iSign Media Solutions 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 ISign Media 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 iSign Media Solutions 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 ISign Media i.e., ISign Media and Maple Leaf go up and down completely randomly.
Pair Corralation between ISign Media and Maple Leaf
Assuming the 90 days horizon iSign Media Solutions is expected to generate 26.43 times more return on investment than Maple Leaf. However, ISign Media is 26.43 times more volatile than Maple Leaf Foods. It trades about 0.07 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 1.00 in iSign Media Solutions on September 3, 2024 and sell it today you would earn a total of 1,395 from holding iSign Media Solutions or generate 139500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSign Media Solutions vs. Maple Leaf Foods
Performance |
| Timeline |
| iSign Media Solutions |
| Maple Leaf Foods |
ISign Media and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISign Media and Maple Leaf
The main advantage of trading using opposite ISign Media and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISign Media 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.| ISign Media vs. Enghouse Systems | ISign Media vs. Pulse Seismic | ISign Media vs. Harvest Global REIT | ISign Media vs. International Zeolite Corp |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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