Correlation Between MTY Food and Arizona Gold
Can any of the company-specific risk be diversified away by investing in both MTY Food and Arizona Gold 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 MTY Food and Arizona Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTY Food Group and Arizona Gold Silver, you can compare the effects of market volatilities on MTY Food and Arizona Gold 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 MTY Food with a short position of Arizona Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Arizona Gold.
Diversification Opportunities for MTY Food and Arizona Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTY and Arizona is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Arizona Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arizona Gold Silver and MTY Food 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 MTY Food Group are associated (or correlated) with Arizona Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arizona Gold Silver has no effect on the direction of MTY Food i.e., MTY Food and Arizona Gold go up and down completely randomly.
Pair Corralation between MTY Food and Arizona Gold
Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.78 times more return on investment than Arizona Gold. However, MTY Food Group is 1.28 times less risky than Arizona Gold. It trades about 0.15 of its potential returns per unit of risk. Arizona Gold Silver is currently generating about 0.01 per unit of risk. If you would invest 4,668 in MTY Food Group on October 24, 2024 and sell it today you would earn a total of 223.00 from holding MTY Food Group or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. Arizona Gold Silver
Performance |
| Timeline |
| MTY Food Group |
| Arizona Gold Silver |
MTY Food and Arizona Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Arizona Gold
The main advantage of trading using opposite MTY Food and Arizona Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Arizona Gold 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 Arizona Gold will offset losses from the drop in Arizona Gold's long position.| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
| Arizona Gold vs. Dolly Varden Silver | Arizona Gold vs. Reyna Silver Corp | Arizona Gold vs. Aztec Minerals Corp | Arizona Gold vs. Aftermath Silver |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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