Correlation Between Maple Leaf and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Maple Peak 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 Maple Leaf and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Maple Peak Investments, you can compare the effects of market volatilities on Maple Leaf and Maple Peak 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 Maple Leaf with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Maple Peak.
Diversification Opportunities for Maple Leaf and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Maple Leaf i.e., Maple Leaf and Maple Peak go up and down completely randomly.
Pair Corralation between Maple Leaf and Maple Peak
If you would invest 2,031 in Maple Leaf Foods on October 25, 2024 and sell it today you would earn a total of 112.00 from holding Maple Leaf Foods or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. Maple Peak Investments
Performance |
| Timeline |
| Maple Leaf Foods |
| Maple Peak Investments |
Maple Leaf and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Maple Peak
The main advantage of trading using opposite Maple Leaf and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
| Maple Peak vs. CVW CleanTech | Maple Peak vs. Data Communications Management | Maple Peak vs. High Liner Foods | Maple Peak vs. Maple Leaf Foods |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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