Correlation Between RETAIL FOOD and MOAB MINERALS
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and MOAB MINERALS 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 MOAB MINERALS 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 MOAB MINERALS LTD, you can compare the effects of market volatilities on RETAIL FOOD and MOAB MINERALS 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 MOAB MINERALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and MOAB MINERALS.
Diversification Opportunities for RETAIL FOOD and MOAB MINERALS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RETAIL and MOAB is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and MOAB MINERALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOAB MINERALS LTD 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 MOAB MINERALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOAB MINERALS LTD has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and MOAB MINERALS go up and down completely randomly.
Pair Corralation between RETAIL FOOD and MOAB MINERALS
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the MOAB MINERALS. But the stock apears to be less risky and, when comparing its historical volatility, RETAIL FOOD GROUP is 14.42 times less risky than MOAB MINERALS. The stock trades about -0.21 of its potential returns per unit of risk. The MOAB MINERALS LTD is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 0.05 in MOAB MINERALS LTD on November 6, 2024 and sell it today you would earn a total of 0.00 from holding MOAB MINERALS LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. MOAB MINERALS LTD
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| MOAB MINERALS LTD |
RETAIL FOOD and MOAB MINERALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and MOAB MINERALS
The main advantage of trading using opposite RETAIL FOOD and MOAB MINERALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, MOAB MINERALS 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 MOAB MINERALS will offset losses from the drop in MOAB MINERALS's long position.| RETAIL FOOD vs. SIVERS SEMICONDUCTORS AB | RETAIL FOOD vs. NorAm Drilling AS | RETAIL FOOD vs. Volkswagen AG | RETAIL FOOD vs. Darden Restaurants |
| MOAB MINERALS vs. Calibre Mining Corp | MOAB MINERALS vs. MCEWEN MINING INC | MOAB MINERALS vs. DISTRICT METALS | MOAB MINERALS vs. Zijin Mining Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |