Correlation Between Maple Leaf and Wishpond Technologies
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Wishpond Technologies 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 Wishpond Technologies 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 Wishpond Technologies, you can compare the effects of market volatilities on Maple Leaf and Wishpond Technologies 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 Wishpond Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Wishpond Technologies.
Diversification Opportunities for Maple Leaf and Wishpond Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maple and Wishpond is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Wishpond Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wishpond Technologies 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 Wishpond Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wishpond Technologies has no effect on the direction of Maple Leaf i.e., Maple Leaf and Wishpond Technologies go up and down completely randomly.
Pair Corralation between Maple Leaf and Wishpond Technologies
Assuming the 90 days trading horizon Maple Leaf Foods is expected to generate 0.28 times more return on investment than Wishpond Technologies. However, Maple Leaf Foods is 3.63 times less risky than Wishpond Technologies. It trades about 0.18 of its potential returns per unit of risk. Wishpond Technologies is currently generating about -0.06 per unit of risk. If you would invest 2,106 in Maple Leaf Foods on September 1, 2024 and sell it today you would earn a total of 169.00 from holding Maple Leaf Foods or generate 8.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Maple Leaf Foods vs. Wishpond Technologies
Performance |
Timeline |
Maple Leaf Foods |
Wishpond Technologies |
Maple Leaf and Wishpond Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maple Leaf and Wishpond Technologies
The main advantage of trading using opposite Maple Leaf and Wishpond Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Wishpond Technologies 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 Wishpond Technologies will offset losses from the drop in Wishpond Technologies' long position.Maple Leaf vs. Leons Furniture Limited | Maple Leaf vs. Autocanada | Maple Leaf vs. Premium Brands Holdings | Maple Leaf vs. Exco Technologies Limited |
Wishpond Technologies vs. Adcore Inc | Wishpond Technologies vs. Emerge Commerce | Wishpond Technologies vs. Quisitive Technology Solutions | Wishpond Technologies vs. DGTL Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |