Correlation Between Lifeway Foods and MTY Food
Can any of the company-specific risk be diversified away by investing in both Lifeway Foods 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 Lifeway Foods and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeway Foods and MTY Food Group, you can compare the effects of market volatilities on Lifeway Foods 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 Lifeway Foods with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and MTY Food.
Diversification Opportunities for Lifeway Foods and MTY Food
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifeway and MTY is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods i.e., Lifeway Foods and MTY Food go up and down completely randomly.
Pair Corralation between Lifeway Foods and MTY Food
Assuming the 90 days horizon Lifeway Foods is expected to under-perform the MTY Food. In addition to that, Lifeway Foods is 1.35 times more volatile than MTY Food Group. It trades about -0.07 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.05 per unit of volatility. If you would invest 3,220 in MTY Food Group on October 25, 2024 and sell it today you would earn a total of 85.00 from holding MTY Food Group or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifeway Foods vs. MTY Food Group
Performance |
| Timeline |
| Lifeway Foods |
| MTY Food Group |
Lifeway Foods and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeway Foods and MTY Food
The main advantage of trading using opposite Lifeway Foods and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods 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.| Lifeway Foods vs. Cairo Communication SpA | Lifeway Foods vs. Playtech plc | Lifeway Foods vs. Ribbon Communications | Lifeway Foods vs. ASPEN TECHINC DL |
| MTY Food vs. McDonalds | MTY Food vs. Starbucks | MTY Food vs. Chipotle Mexican Grill | MTY Food vs. Compass Group PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |