Correlation Between Missfresh and Ocado Group
Can any of the company-specific risk be diversified away by investing in both Missfresh and Ocado Group 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 Missfresh and Ocado Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Missfresh Ltd ADR and Ocado Group plc, you can compare the effects of market volatilities on Missfresh and Ocado Group 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 Missfresh with a short position of Ocado Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Missfresh and Ocado Group.
Diversification Opportunities for Missfresh and Ocado Group
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Missfresh and Ocado is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Missfresh Ltd ADR and Ocado Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocado Group plc and Missfresh 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 Missfresh Ltd ADR are associated (or correlated) with Ocado Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocado Group plc has no effect on the direction of Missfresh i.e., Missfresh and Ocado Group go up and down completely randomly.
Pair Corralation between Missfresh and Ocado Group
If you would invest 48.00 in Missfresh Ltd ADR on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Missfresh Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Missfresh Ltd ADR vs. Ocado Group plc
Performance |
| Timeline |
| Missfresh ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ocado Group plc |
Missfresh and Ocado Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Missfresh and Ocado Group
The main advantage of trading using opposite Missfresh and Ocado Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Missfresh position performs unexpectedly, Ocado Group 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 Ocado Group will offset losses from the drop in Ocado Group's long position.| Missfresh vs. Natural Grocers by | Missfresh vs. Ingles Markets Incorporated | Missfresh vs. Krispy Kreme | Missfresh vs. Grocery Outlet Holding |
| Ocado Group vs. Natural Grocers by | Ocado Group vs. Grocery Outlet Holding | Ocado Group vs. Village Super Market | Ocado Group vs. Ingles Markets Incorporated |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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