Correlation Between My Foodie and CogState
Can any of the company-specific risk be diversified away by investing in both My Foodie and CogState 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 CogState 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 CogState, you can compare the effects of market volatilities on My Foodie and CogState 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 CogState. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and CogState.
Diversification Opportunities for My Foodie and CogState
Pay attention - limited upside
The 3 months correlation between MBX and CogState is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding My Foodie Box and CogState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CogState 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 CogState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CogState has no effect on the direction of My Foodie i.e., My Foodie and CogState go up and down completely randomly.
Pair Corralation between My Foodie and CogState
If you would invest 98.00 in CogState on September 13, 2024 and sell it today you would earn a total of 21.00 from holding CogState or generate 21.43% 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. CogState
Performance |
| Timeline |
| My Foodie Box |
| CogState |
My Foodie and CogState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Foodie and CogState
The main advantage of trading using opposite My Foodie and CogState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Foodie position performs unexpectedly, CogState 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 CogState will offset losses from the drop in CogState's long position.| My Foodie vs. MetalsGrove Mining | My Foodie vs. Oceania Healthcare | My Foodie vs. Hotel Property Investments | My Foodie vs. Healthco Healthcare and |
| CogState vs. Bisalloy Steel Group | CogState vs. Treasury Wine Estates | CogState vs. Tombador Iron | CogState vs. Legacy Iron Ore |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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