Correlation Between Orange Juice and Micro E
Can any of the company-specific risk be diversified away by investing in both Orange Juice and Micro E 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 Micro E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orange Juice and Micro E mini Russell, you can compare the effects of market volatilities on Orange Juice and Micro E 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 Micro E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orange Juice and Micro E.
Diversification Opportunities for Orange Juice and Micro E
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orange and Micro is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Orange Juice and Micro E mini Russell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro E mini 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 Micro E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro E mini has no effect on the direction of Orange Juice i.e., Orange Juice and Micro E go up and down completely randomly.
Pair Corralation between Orange Juice and Micro E
Assuming the 90 days horizon Orange Juice is expected to generate 1.97 times more return on investment than Micro E. However, Orange Juice is 1.97 times more volatile than Micro E mini Russell. It trades about 0.08 of its potential returns per unit of risk. Micro E mini Russell is currently generating about 0.05 per unit of risk. If you would invest 20,565 in Orange Juice on August 24, 2024 and sell it today you would earn a total of 29,985 from holding Orange Juice or generate 145.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.41% |
| Values | Daily Returns |
Orange Juice vs. Micro E mini Russell
Performance |
| Timeline |
| Orange Juice |
| Micro E mini |
Orange Juice and Micro E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orange Juice and Micro E
The main advantage of trading using opposite Orange Juice and Micro E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orange Juice position performs unexpectedly, Micro E 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 Micro E will offset losses from the drop in Micro E's long position.| Orange Juice vs. Micro E mini Russell | Orange Juice vs. Lumber Futures | Orange Juice vs. Live Cattle Futures |
| Micro E vs. Silver Futures | Micro E vs. Orange Juice | Micro E vs. Brent Crude Oil | Micro E vs. Natural Gas |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |