Correlation Between Maple Leaf and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and PACIFIC ONLINE 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 Maple Leaf and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and PACIFIC ONLINE, you can compare the effects of market volatilities on Maple Leaf and PACIFIC ONLINE 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 Maple Leaf with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and PACIFIC ONLINE.
Diversification Opportunities for Maple Leaf and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of Maple Leaf i.e., Maple Leaf and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between Maple Leaf and PACIFIC ONLINE
If you would invest 1,360 in Maple Leaf Foods on November 5, 2024 and sell it today you would earn a total of 40.00 from holding Maple Leaf Foods or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. PACIFIC ONLINE
Performance |
| Timeline |
| Maple Leaf Foods |
| PACIFIC ONLINE |
Maple Leaf and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and PACIFIC ONLINE
The main advantage of trading using opposite Maple Leaf and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| Maple Leaf vs. BURLINGTON STORES | Maple Leaf vs. MARKET VECTR RETAIL | Maple Leaf vs. COSTCO WHOLESALE CDR | Maple Leaf vs. ANTA SPORTS PRODUCT |
| PACIFIC ONLINE vs. HK Electric Investments | PACIFIC ONLINE vs. Scottish Mortgage Investment | PACIFIC ONLINE vs. Fast Retailing Co | PACIFIC ONLINE vs. Tradegate AG Wertpapierhandelsbank |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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