Correlation Between McDonalds and Moxian
Can any of the company-specific risk be diversified away by investing in both McDonalds and Moxian 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 Moxian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McDonalds and Moxian Inc, you can compare the effects of market volatilities on McDonalds and Moxian 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 Moxian. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Moxian.
Diversification Opportunities for McDonalds and Moxian
Very good diversification
The 3 months correlation between McDonalds and Moxian is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Moxian Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moxian Inc 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 Moxian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moxian Inc has no effect on the direction of McDonalds i.e., McDonalds and Moxian go up and down completely randomly.
Pair Corralation between McDonalds and Moxian
If you would invest 26,600 in McDonalds on September 3, 2024 and sell it today you would earn a total of 3,001 from holding McDonalds or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
McDonalds vs. Moxian Inc
Performance |
| Timeline |
| McDonalds |
| Moxian Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
McDonalds and Moxian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Moxian
The main advantage of trading using opposite McDonalds and Moxian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Moxian 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 Moxian will offset losses from the drop in Moxian's long position.| McDonalds vs. Highway Holdings Limited | McDonalds vs. QCR Holdings | McDonalds vs. Partner Communications | McDonalds vs. Acumen Pharmaceuticals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| 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 | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |