Correlation Between MULTI TREX and BUA FOODS
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By analyzing existing cross correlation between MULTI TREX INTEGRATED FOODS and BUA FOODS PLC, you can compare the effects of market volatilities on MULTI TREX and BUA FOODS 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 MULTI TREX with a short position of BUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTI TREX and BUA FOODS.
Diversification Opportunities for MULTI TREX and BUA FOODS
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MULTI and BUA is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding MULTI TREX INTEGRATED FOODS and BUA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BUA FOODS PLC and MULTI TREX 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 MULTI TREX INTEGRATED FOODS are associated (or correlated) with BUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BUA FOODS PLC has no effect on the direction of MULTI TREX i.e., MULTI TREX and BUA FOODS go up and down completely randomly.
Pair Corralation between MULTI TREX and BUA FOODS
If you would invest 19,890 in BUA FOODS PLC on September 2, 2024 and sell it today you would earn a total of 19,600 from holding BUA FOODS PLC or generate 98.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MULTI TREX INTEGRATED FOODS vs. BUA FOODS PLC
Performance |
| Timeline |
| MULTI TREX INTEGRATED |
| BUA FOODS PLC |
MULTI TREX and BUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MULTI TREX and BUA FOODS
The main advantage of trading using opposite MULTI TREX and BUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MULTI TREX position performs unexpectedly, BUA FOODS 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 BUA FOODS will offset losses from the drop in BUA FOODS's long position.| MULTI TREX vs. CHAMPION BREWERIES PLC | MULTI TREX vs. INTERNATIONAL BREWERIES PLC | MULTI TREX vs. STACO INSURANCE PLC | MULTI TREX vs. STERLING FINANCIAL 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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