Correlation Between MTY Food and Blue Thunder
Can any of the company-specific risk be diversified away by investing in both MTY Food and Blue Thunder 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 Blue Thunder 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 Blue Thunder Mining, you can compare the effects of market volatilities on MTY Food and Blue Thunder 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 Blue Thunder. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Blue Thunder.
Diversification Opportunities for MTY Food and Blue Thunder
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MTY and Blue is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Blue Thunder Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Thunder Mining 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 Blue Thunder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Thunder Mining has no effect on the direction of MTY Food i.e., MTY Food and Blue Thunder go up and down completely randomly.
Pair Corralation between MTY Food and Blue Thunder
Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.25 times more return on investment than Blue Thunder. However, MTY Food Group is 4.06 times less risky than Blue Thunder. It trades about 0.19 of its potential returns per unit of risk. Blue Thunder Mining is currently generating about -0.15 per unit of risk. If you would invest 4,587 in MTY Food Group on September 13, 2024 and sell it today you would earn a total of 269.00 from holding MTY Food Group or generate 5.86% 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. Blue Thunder Mining
Performance |
| Timeline |
| MTY Food Group |
| Blue Thunder Mining |
MTY Food and Blue Thunder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Blue Thunder
The main advantage of trading using opposite MTY Food and Blue Thunder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Blue Thunder 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 Blue Thunder will offset losses from the drop in Blue Thunder's long position.| MTY Food vs. Berkshire Hathaway CDR | MTY Food vs. Microsoft Corp CDR | MTY Food vs. Apple Inc CDR | MTY Food vs. Alphabet Inc CDR |
| Blue Thunder vs. Getty Copper | Blue Thunder vs. Arizona Gold Silver | Blue Thunder vs. Mako Mining Corp | Blue Thunder vs. Metalero Mining Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |