Correlation Between McDonalds and Day Hagan
Can any of the company-specific risk be diversified away by investing in both McDonalds and Day Hagan 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 McDonalds and Day Hagan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McDonalds and Day Hagan Tactical, you can compare the effects of market volatilities on McDonalds and Day Hagan 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 McDonalds with a short position of Day Hagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Day Hagan.
Diversification Opportunities for McDonalds and Day Hagan
Pay attention - limited upside
The 3 months correlation between McDonalds and Day is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Day Hagan Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day Hagan Tactical and McDonalds 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 McDonalds are associated (or correlated) with Day Hagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day Hagan Tactical has no effect on the direction of McDonalds i.e., McDonalds and Day Hagan go up and down completely randomly.
Pair Corralation between McDonalds and Day Hagan
If you would invest 29,211 in McDonalds on September 1, 2024 and sell it today you would earn a total of 390.00 from holding McDonalds or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
McDonalds vs. Day Hagan Tactical
Performance |
| Timeline |
| McDonalds |
| Day Hagan Tactical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
McDonalds and Day Hagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Day Hagan
The main advantage of trading using opposite McDonalds and Day Hagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Day Hagan 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 Day Hagan will offset losses from the drop in Day Hagan's long position.| McDonalds vs. The Wendys Co | McDonalds vs. Wingstop | McDonalds vs. Shake Shack | McDonalds vs. Papa Johns International |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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