Correlation Between RETAIL FOOD and Rheinmetall
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and Rheinmetall 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 RETAIL FOOD and Rheinmetall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Rheinmetall AG, you can compare the effects of market volatilities on RETAIL FOOD and Rheinmetall 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 RETAIL FOOD with a short position of Rheinmetall. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Rheinmetall.
Diversification Opportunities for RETAIL FOOD and Rheinmetall
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RETAIL and Rheinmetall is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Rheinmetall AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rheinmetall AG and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with Rheinmetall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rheinmetall AG has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and Rheinmetall go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Rheinmetall
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Rheinmetall. In addition to that, RETAIL FOOD is 1.31 times more volatile than Rheinmetall AG. It trades about -0.01 of its total potential returns per unit of risk. Rheinmetall AG is currently generating about 0.17 per unit of volatility. If you would invest 28,081 in Rheinmetall AG on October 28, 2024 and sell it today you would earn a total of 44,959 from holding Rheinmetall AG or generate 160.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Rheinmetall AG
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Rheinmetall AG |
RETAIL FOOD and Rheinmetall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Rheinmetall
The main advantage of trading using opposite RETAIL FOOD and Rheinmetall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, Rheinmetall 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 Rheinmetall will offset losses from the drop in Rheinmetall's long position.| RETAIL FOOD vs. Genertec Universal Medical | RETAIL FOOD vs. TITAN MACHINERY | RETAIL FOOD vs. CVR Medical Corp | RETAIL FOOD vs. ONWARD MEDICAL BV |
| Rheinmetall vs. AEON STORES | Rheinmetall vs. JIAHUA STORES | Rheinmetall vs. BURLINGTON STORES | Rheinmetall vs. Elmos Semiconductor SE |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |