Correlation Between MTY Food and ExGen Resources
Can any of the company-specific risk be diversified away by investing in both MTY Food and ExGen Resources 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 ExGen Resources 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 ExGen Resources, you can compare the effects of market volatilities on MTY Food and ExGen Resources 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 ExGen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and ExGen Resources.
Diversification Opportunities for MTY Food and ExGen Resources
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTY and ExGen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and ExGen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExGen Resources 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 ExGen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExGen Resources has no effect on the direction of MTY Food i.e., MTY Food and ExGen Resources go up and down completely randomly.
Pair Corralation between MTY Food and ExGen Resources
Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.21 times more return on investment than ExGen Resources. However, MTY Food Group is 4.79 times less risky than ExGen Resources. It trades about 0.22 of its potential returns per unit of risk. ExGen Resources is currently generating about -0.11 per unit of risk. If you would invest 4,593 in MTY Food Group on November 3, 2024 and sell it today you would earn a total of 454.00 from holding MTY Food Group or generate 9.88% 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. ExGen Resources
Performance |
| Timeline |
| MTY Food Group |
| ExGen Resources |
MTY Food and ExGen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and ExGen Resources
The main advantage of trading using opposite MTY Food and ExGen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, ExGen Resources 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 ExGen Resources will offset losses from the drop in ExGen Resources' long position.| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
| ExGen Resources vs. Mako Mining Corp | ExGen Resources vs. NeXGold Mining Corp | ExGen Resources vs. Metalero Mining Corp | ExGen Resources vs. SalesforceCom CDR |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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