Correlation Between Multiexport Foods and Schwager
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By analyzing existing cross correlation between Multiexport Foods SA and Schwager, you can compare the effects of market volatilities on Multiexport Foods and Schwager 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 Schwager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiexport Foods and Schwager.
Diversification Opportunities for Multiexport Foods and Schwager
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multiexport and Schwager is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Multiexport Foods SA and Schwager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwager 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 Schwager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwager has no effect on the direction of Multiexport Foods i.e., Multiexport Foods and Schwager go up and down completely randomly.
Pair Corralation between Multiexport Foods and Schwager
Assuming the 90 days trading horizon Multiexport Foods SA is expected to generate 0.9 times more return on investment than Schwager. However, Multiexport Foods SA is 1.11 times less risky than Schwager. It trades about 0.28 of its potential returns per unit of risk. Schwager is currently generating about -0.03 per unit of risk. If you would invest 18,641 in Multiexport Foods SA on September 2, 2024 and sell it today you would earn a total of 1,759 from holding Multiexport Foods SA or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.18% |
| Values | Daily Returns |
Multiexport Foods SA vs. Schwager
Performance |
| Timeline |
| Multiexport Foods |
| Schwager |
Multiexport Foods and Schwager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiexport Foods and Schwager
The main advantage of trading using opposite Multiexport Foods and Schwager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiexport Foods position performs unexpectedly, Schwager 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 Schwager will offset losses from the drop in Schwager's long position.| Multiexport Foods vs. Embotelladora Andina SA | Multiexport Foods vs. Administradora Americana de | Multiexport Foods vs. Las Condes | Multiexport Foods vs. Energia Latina SA |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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