Correlation Between McDonalds and Standard
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By analyzing existing cross correlation between McDonalds and Standard Chartered Plc, you can compare the effects of market volatilities on McDonalds and Standard 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 Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and Standard.
Diversification Opportunities for McDonalds and Standard
Excellent diversification
The 3 months correlation between McDonalds and Standard is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Standard Chartered Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Chartered Plc 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 Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Chartered Plc has no effect on the direction of McDonalds i.e., McDonalds and Standard go up and down completely randomly.
Pair Corralation between McDonalds and Standard
Considering the 90-day investment horizon McDonalds is expected to generate 0.62 times more return on investment than Standard. However, McDonalds is 1.61 times less risky than Standard. It trades about -0.06 of its potential returns per unit of risk. Standard Chartered Plc is currently generating about -0.48 per unit of risk. If you would invest 29,973 in McDonalds on September 12, 2024 and sell it today you would lose (363.00) from holding McDonalds or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
McDonalds vs. Standard Chartered Plc
Performance |
| Timeline |
| McDonalds |
| Standard Chartered Plc |
McDonalds and Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and Standard
The main advantage of trading using opposite McDonalds and Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, Standard 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 Standard will offset losses from the drop in Standard's long position.| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza | McDonalds vs. Yum Brands |
| Standard vs. Universal Technical Institute | Standard vs. Compania Cervecerias Unidas | Standard vs. Zane Interactive Publishing | Standard vs. National Beverage 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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