Correlation Between McCormick Company and Elamex SA
Can any of the company-specific risk be diversified away by investing in both McCormick Company and Elamex SA 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 McCormick Company and Elamex SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McCormick Company Incorporated and Elamex SA de, you can compare the effects of market volatilities on McCormick Company and Elamex SA 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 McCormick Company with a short position of Elamex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of McCormick Company and Elamex SA.
Diversification Opportunities for McCormick Company and Elamex SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McCormick and Elamex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McCormick Company Incorporated and Elamex SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elamex SA de and McCormick Company 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 McCormick Company Incorporated are associated (or correlated) with Elamex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elamex SA de has no effect on the direction of McCormick Company i.e., McCormick Company and Elamex SA go up and down completely randomly.
Pair Corralation between McCormick Company and Elamex SA
If you would invest 7,824 in McCormick Company Incorporated on September 1, 2024 and sell it today you would earn a total of 17.00 from holding McCormick Company Incorporated or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
McCormick Company Incorporated vs. Elamex SA de
Performance |
| Timeline |
| McCormick Company |
| Elamex SA de |
McCormick Company and Elamex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McCormick Company and Elamex SA
The main advantage of trading using opposite McCormick Company and Elamex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McCormick Company position performs unexpectedly, Elamex SA 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 Elamex SA will offset losses from the drop in Elamex SA's long position.| McCormick Company vs. ConAgra Foods | McCormick Company vs. Campbell Soup | McCormick Company vs. Kellanova | McCormick Company vs. General Mills |
| Elamex SA vs. Premier Foods Plc | Elamex SA vs. Torque Lifestyle Brands | Elamex SA vs. ConAgra Foods | Elamex SA vs. McCormick Company 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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