Correlation Between McDonalds and Strattner Financial
Can any of the company-specific risk be diversified away by investing in both McDonalds and Strattner Financial 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 Strattner Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McDonalds and Strattner Financial Group, you can compare the effects of market volatilities on McDonalds and Strattner Financial 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 Strattner Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Strattner Financial.
Diversification Opportunities for McDonalds and Strattner Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McDonalds and Strattner is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Strattner Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strattner Financial 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 Strattner Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strattner Financial has no effect on the direction of McDonalds i.e., McDonalds and Strattner Financial go up and down completely randomly.
Pair Corralation between McDonalds and Strattner Financial
If you would invest 29,110 in McDonalds on September 4, 2024 and sell it today you would earn a total of 134.00 from holding McDonalds or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
McDonalds vs. Strattner Financial Group
Performance |
| Timeline |
| McDonalds |
| Strattner Financial |
McDonalds and Strattner Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Strattner Financial
The main advantage of trading using opposite McDonalds and Strattner Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Strattner Financial 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 Strattner Financial will offset losses from the drop in Strattner Financial's long position.| McDonalds vs. Hyatt Hotels | McDonalds vs. Smart Share Global | McDonalds vs. Sweetgreen | McDonalds vs. Wyndham Hotels Resorts |
| Strattner Financial vs. Dorchester Minerals LP | Strattner Financial vs. 88 Energy Limited | Strattner Financial vs. Hess Corporation | Strattner Financial vs. Antero Resources Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets |