Correlation Between Maple Leaf and PATTIES FOODS
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and PATTIES FOODS 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 PATTIES FOODS 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 PATTIES FOODS , you can compare the effects of market volatilities on Maple Leaf and PATTIES FOODS 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 PATTIES FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and PATTIES FOODS.
Diversification Opportunities for Maple Leaf and PATTIES FOODS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maple and PATTIES is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and PATTIES FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTIES FOODS 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 PATTIES FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTIES FOODS has no effect on the direction of Maple Leaf i.e., Maple Leaf and PATTIES FOODS go up and down completely randomly.
Pair Corralation between Maple Leaf and PATTIES FOODS
Assuming the 90 days trading horizon Maple Leaf Foods is expected to generate 0.79 times more return on investment than PATTIES FOODS. However, Maple Leaf Foods is 1.26 times less risky than PATTIES FOODS. It trades about 0.16 of its potential returns per unit of risk. PATTIES FOODS is currently generating about -0.06 per unit of risk. If you would invest 1,360 in Maple Leaf Foods on November 7, 2024 and sell it today you would earn a total of 90.00 from holding Maple Leaf Foods or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Maple Leaf Foods vs. PATTIES FOODS
Performance |
| Timeline |
| Maple Leaf Foods |
| PATTIES FOODS |
Maple Leaf and PATTIES FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and PATTIES FOODS
The main advantage of trading using opposite Maple Leaf and PATTIES FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, PATTIES FOODS 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 PATTIES FOODS will offset losses from the drop in PATTIES FOODS's long position.| Maple Leaf vs. Nok Airlines PCL | Maple Leaf vs. AEGEAN AIRLINES | Maple Leaf vs. United Airlines Holdings | Maple Leaf vs. SINGAPORE AIRLINES |
| PATTIES FOODS vs. Zoom Video Communications | PATTIES FOODS vs. GLG LIFE TECH | PATTIES FOODS vs. Bio Techne Corp | PATTIES FOODS vs. Arrow Electronics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |