Correlation Between MTY Food and Canso Select
Can any of the company-specific risk be diversified away by investing in both MTY Food and Canso Select 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 Canso Select 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 Canso Select Opportunities, you can compare the effects of market volatilities on MTY Food and Canso Select 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 Canso Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Canso Select.
Diversification Opportunities for MTY Food and Canso Select
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between MTY and Canso is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Canso Select Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Select Opportu 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 Canso Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Select Opportu has no effect on the direction of MTY Food i.e., MTY Food and Canso Select go up and down completely randomly.
Pair Corralation between MTY Food and Canso Select
Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.4 times more return on investment than Canso Select. However, MTY Food Group is 2.51 times less risky than Canso Select. It trades about 0.16 of its potential returns per unit of risk. Canso Select Opportunities is currently generating about 0.04 per unit of risk. If you would invest 4,188 in MTY Food Group on November 2, 2024 and sell it today you would earn a total of 1,088 from holding MTY Food Group or generate 25.98% 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. Canso Select Opportunities
Performance |
| Timeline |
| MTY Food Group |
| Canso Select Opportu |
MTY Food and Canso Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Canso Select
The main advantage of trading using opposite MTY Food and Canso Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Canso Select 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 Canso Select will offset losses from the drop in Canso Select's long position.| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
| Canso Select vs. Labrador Iron Ore | Canso Select vs. Renoworks Software | Canso Select vs. Chemtrade Logistics Income | Canso Select vs. Plaza Retail REIT |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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