Correlation Between McDonalds and Quizam Media
Can any of the company-specific risk be diversified away by investing in both McDonalds and Quizam Media 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 Quizam Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McDonalds and Quizam Media, you can compare the effects of market volatilities on McDonalds and Quizam Media 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 Quizam Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Quizam Media.
Diversification Opportunities for McDonalds and Quizam Media
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McDonalds and Quizam is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Quizam Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quizam Media 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 Quizam Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quizam Media has no effect on the direction of McDonalds i.e., McDonalds and Quizam Media go up and down completely randomly.
Pair Corralation between McDonalds and Quizam Media
Considering the 90-day investment horizon McDonalds is expected to under-perform the Quizam Media. In addition to that, McDonalds is 1.53 times more volatile than Quizam Media. It trades about -0.28 of its total potential returns per unit of risk. Quizam Media is currently generating about -0.22 per unit of volatility. If you would invest 1.74 in Quizam Media on October 21, 2024 and sell it today you would lose (0.04) from holding Quizam Media or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
McDonalds vs. Quizam Media
Performance |
| Timeline |
| McDonalds |
| Quizam Media |
McDonalds and Quizam Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Quizam Media
The main advantage of trading using opposite McDonalds and Quizam Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Quizam Media 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 Quizam Media will offset losses from the drop in Quizam Media's long position.| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza Common | McDonalds vs. Yum Brands |
| Quizam Media vs. Tinybeans Group Limited | Quizam Media vs. Sabio Holdings | Quizam Media vs. Zoomd Technologies | Quizam Media vs. DGTL Holdings |
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
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |