Correlation Between MTY Food and Wishpond Technologies
Can any of the company-specific risk be diversified away by investing in both MTY Food and Wishpond Technologies 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 Wishpond Technologies 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 Wishpond Technologies, you can compare the effects of market volatilities on MTY Food and Wishpond Technologies 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 Wishpond Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Wishpond Technologies.
Diversification Opportunities for MTY Food and Wishpond Technologies
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MTY and Wishpond is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Wishpond Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wishpond Technologies 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 Wishpond Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wishpond Technologies has no effect on the direction of MTY Food i.e., MTY Food and Wishpond Technologies go up and down completely randomly.
Pair Corralation between MTY Food and Wishpond Technologies
Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.22 times more return on investment than Wishpond Technologies. However, MTY Food Group is 4.64 times less risky than Wishpond Technologies. It trades about 0.21 of its potential returns per unit of risk. Wishpond Technologies is currently generating about -0.06 per unit of risk. If you would invest 4,447 in MTY Food Group on September 1, 2024 and sell it today you would earn a total of 328.00 from holding MTY Food Group or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MTY Food Group vs. Wishpond Technologies
Performance |
| Timeline |
| MTY Food Group |
| Wishpond Technologies |
MTY Food and Wishpond Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTY Food and Wishpond Technologies
The main advantage of trading using opposite MTY Food and Wishpond Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Wishpond Technologies 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 Wishpond Technologies will offset losses from the drop in Wishpond Technologies' long position.| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
| Wishpond Technologies vs. Adcore Inc | Wishpond Technologies vs. Emerge Commerce | Wishpond Technologies vs. Quisitive Technology Solutions | Wishpond Technologies vs. DGTL Holdings |
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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