Correlation Between My Foodie and Australia
Can any of the company-specific risk be diversified away by investing in both My Foodie and Australia 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 My Foodie and Australia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between My Foodie Box and Australia and New, you can compare the effects of market volatilities on My Foodie and Australia 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 My Foodie with a short position of Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and Australia.
Diversification Opportunities for My Foodie and Australia
Pay attention - limited upside
The 3 months correlation between MBX and Australia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding My Foodie Box and Australia and New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australia and New and My Foodie 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 My Foodie Box are associated (or correlated) with Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australia and New has no effect on the direction of My Foodie i.e., My Foodie and Australia go up and down completely randomly.
Pair Corralation between My Foodie and Australia
Assuming the 90 days trading horizon My Foodie Box is expected to under-perform the Australia. In addition to that, My Foodie is 1.85 times more volatile than Australia and New. It trades about -0.05 of its total potential returns per unit of risk. Australia and New is currently generating about 0.09 per unit of volatility. If you would invest 2,209 in Australia and New on September 12, 2024 and sell it today you would earn a total of 739.00 from holding Australia and New or generate 33.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
My Foodie Box vs. Australia and New
Performance |
| Timeline |
| My Foodie Box |
| Australia and New |
My Foodie and Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Foodie and Australia
The main advantage of trading using opposite My Foodie and Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Foodie position performs unexpectedly, Australia 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 Australia will offset losses from the drop in Australia's long position.| My Foodie vs. Tlou Energy | My Foodie vs. Southern Cross Gold | My Foodie vs. Minbos Resources | My Foodie vs. Elevate Uranium |
| Australia vs. Qbe Insurance Group | Australia vs. Seven West Media | Australia vs. My Foodie Box | Australia vs. Falcon Metals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets |