Correlation Between Orange Juice and E Mini
Can any of the company-specific risk be diversified away by investing in both Orange Juice and E Mini 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 Orange Juice and E Mini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orange Juice and E Mini SP 500, you can compare the effects of market volatilities on Orange Juice and E Mini 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 Orange Juice with a short position of E Mini. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orange Juice and E Mini.
Diversification Opportunities for Orange Juice and E Mini
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orange and ESUSD is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Orange Juice and E Mini SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Mini SP and Orange Juice 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 Orange Juice are associated (or correlated) with E Mini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Mini SP has no effect on the direction of Orange Juice i.e., Orange Juice and E Mini go up and down completely randomly.
Pair Corralation between Orange Juice and E Mini
Assuming the 90 days horizon Orange Juice is expected to generate 2.27 times more return on investment than E Mini. However, Orange Juice is 2.27 times more volatile than E Mini SP 500. It trades about 0.15 of its potential returns per unit of risk. E Mini SP 500 is currently generating about 0.16 per unit of risk. If you would invest 48,335 in Orange Juice on August 31, 2024 and sell it today you would earn a total of 3,040 from holding Orange Juice or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Orange Juice vs. E Mini SP 500
Performance |
| Timeline |
| Orange Juice |
| E Mini SP |
Orange Juice and E Mini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orange Juice and E Mini
The main advantage of trading using opposite Orange Juice and E Mini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orange Juice position performs unexpectedly, E Mini 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 E Mini will offset losses from the drop in E Mini's long position.| Orange Juice vs. Cocoa | Orange Juice vs. Aluminum Futures | Orange Juice vs. Micro E mini Russell | Orange Juice vs. Live Cattle Futures |
| E Mini vs. Lumber Futures | E Mini vs. Silver Futures | E Mini vs. Lean Hogs Futures | E Mini vs. Corn Futures |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |