Correlation Between Peak Resources and CAL MAINE
Can any of the company-specific risk be diversified away by investing in both Peak Resources and CAL MAINE 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 Peak Resources and CAL MAINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Resources Limited and CAL MAINE FOODS, you can compare the effects of market volatilities on Peak Resources and CAL MAINE 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 Peak Resources with a short position of CAL MAINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Resources and CAL MAINE.
Diversification Opportunities for Peak Resources and CAL MAINE
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peak and CAL is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Peak Resources Limited and CAL MAINE FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAL MAINE FOODS and Peak Resources 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 Peak Resources Limited are associated (or correlated) with CAL MAINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAL MAINE FOODS has no effect on the direction of Peak Resources i.e., Peak Resources and CAL MAINE go up and down completely randomly.
Pair Corralation between Peak Resources and CAL MAINE
Assuming the 90 days horizon Peak Resources Limited is expected to generate 8.27 times more return on investment than CAL MAINE. However, Peak Resources is 8.27 times more volatile than CAL MAINE FOODS. It trades about 0.1 of its potential returns per unit of risk. CAL MAINE FOODS is currently generating about 0.45 per unit of risk. If you would invest 5.80 in Peak Resources Limited on September 12, 2024 and sell it today you would earn a total of 0.70 from holding Peak Resources Limited or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peak Resources Limited vs. CAL MAINE FOODS
Performance |
| Timeline |
| Peak Resources |
| CAL MAINE FOODS |
Peak Resources and CAL MAINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peak Resources and CAL MAINE
The main advantage of trading using opposite Peak Resources and CAL MAINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Resources position performs unexpectedly, CAL MAINE 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 CAL MAINE will offset losses from the drop in CAL MAINE's long position.| Peak Resources vs. NEWELL RUBBERMAID | Peak Resources vs. The Yokohama Rubber | Peak Resources vs. Hyster Yale Materials Handling | Peak Resources vs. Park Hotels Resorts |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| 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 | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |