Correlation Between Maple Peak and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Maple Leaf 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 Peak and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and Maple Leaf Foods, you can compare the effects of market volatilities on Maple Peak and Maple Leaf 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 Peak with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Maple Leaf.
Diversification Opportunities for Maple Peak and Maple Leaf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and Maple Peak 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 Peak Investments are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Maple Peak i.e., Maple Peak and Maple Leaf go up and down completely randomly.
Pair Corralation between Maple Peak and Maple Leaf
If you would invest 2,135 in Maple Leaf Foods on August 31, 2024 and sell it today you would earn a total of 178.00 from holding Maple Leaf Foods or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Peak Investments vs. Maple Leaf Foods
Performance |
| Timeline |
| Maple Peak Investments |
| Maple Leaf Foods |
Maple Peak and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Maple Leaf
The main advantage of trading using opposite Maple Peak and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Maple Peak vs. Berkshire Hathaway CDR | Maple Peak vs. JPMorgan Chase Co | Maple Peak vs. Bank of America | Maple Peak vs. Alphabet Inc CDR |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. Forstrong Global Income | Maple Leaf vs. iShares Canadian HYBrid | Maple Leaf vs. Brompton European Dividend |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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