Correlation Between McDonalds and COOPERATIEVE
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By analyzing existing cross correlation between McDonalds and COOPERATIEVE CENTRALE RAIFFEISEN, you can compare the effects of market volatilities on McDonalds and COOPERATIEVE 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 COOPERATIEVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and COOPERATIEVE.
Diversification Opportunities for McDonalds and COOPERATIEVE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between McDonalds and COOPERATIEVE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and COOPERATIEVE CENTRALE RAIFFEIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COOPERATIEVE CENTRALE 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 COOPERATIEVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COOPERATIEVE CENTRALE has no effect on the direction of McDonalds i.e., McDonalds and COOPERATIEVE go up and down completely randomly.
Pair Corralation between McDonalds and COOPERATIEVE
Considering the 90-day investment horizon McDonalds is expected to generate 0.8 times more return on investment than COOPERATIEVE. However, McDonalds is 1.26 times less risky than COOPERATIEVE. It trades about -0.2 of its potential returns per unit of risk. COOPERATIEVE CENTRALE RAIFFEISEN is currently generating about -0.2 per unit of risk. If you would invest 29,023 in McDonalds on October 20, 2024 and sell it today you would lose (928.00) from holding McDonalds or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
McDonalds vs. COOPERATIEVE CENTRALE RAIFFEIS
Performance |
| Timeline |
| McDonalds |
| COOPERATIEVE CENTRALE |
McDonalds and COOPERATIEVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and COOPERATIEVE
The main advantage of trading using opposite McDonalds and COOPERATIEVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, COOPERATIEVE 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 COOPERATIEVE will offset losses from the drop in COOPERATIEVE's long position.| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza Common | McDonalds vs. Yum Brands |
| COOPERATIEVE vs. Gatos Silver | COOPERATIEVE vs. Black Mammoth Metals | COOPERATIEVE vs. Sonos Inc | COOPERATIEVE vs. Ubisoft Entertainment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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