Correlation Between Multiexport Foods and Weg ADM
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By analyzing existing cross correlation between Multiexport Foods SA and Weg ADM General, you can compare the effects of market volatilities on Multiexport Foods and Weg ADM 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 Multiexport Foods with a short position of Weg ADM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiexport Foods and Weg ADM.
Diversification Opportunities for Multiexport Foods and Weg ADM
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multiexport and Weg is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Multiexport Foods SA and Weg ADM General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weg ADM General and Multiexport Foods 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 Multiexport Foods SA are associated (or correlated) with Weg ADM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weg ADM General has no effect on the direction of Multiexport Foods i.e., Multiexport Foods and Weg ADM go up and down completely randomly.
Pair Corralation between Multiexport Foods and Weg ADM
Assuming the 90 days trading horizon Multiexport Foods SA is expected to generate 0.52 times more return on investment than Weg ADM. However, Multiexport Foods SA is 1.91 times less risky than Weg ADM. It trades about 0.1 of its potential returns per unit of risk. Weg ADM General is currently generating about -0.18 per unit of risk. If you would invest 20,396 in Multiexport Foods SA on August 28, 2024 and sell it today you would earn a total of 92.00 from holding Multiexport Foods SA or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.89% |
| Values | Daily Returns |
Multiexport Foods SA vs. Weg ADM General
Performance |
| Timeline |
| Multiexport Foods |
| Weg ADM General |
Multiexport Foods and Weg ADM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiexport Foods and Weg ADM
The main advantage of trading using opposite Multiexport Foods and Weg ADM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiexport Foods position performs unexpectedly, Weg ADM 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 Weg ADM will offset losses from the drop in Weg ADM's long position.| Multiexport Foods vs. Aguas Andinas SA | Multiexport Foods vs. Parq Arauco | Multiexport Foods vs. Enel Generacin Chile | Multiexport Foods vs. Sociedad Matriz SAAM |
| Weg ADM vs. Salfacorp | Weg ADM vs. Vina Concha To | Weg ADM vs. HMC SA ADMINISTRADORA | Weg ADM vs. Multiexport Foods SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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