Correlation Between Ocumetics Technology and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Ocumetics Technology and Maple Leaf 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 Ocumetics Technology and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocumetics Technology Corp and Maple Leaf Foods, you can compare the effects of market volatilities on Ocumetics Technology and Maple Leaf 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 Ocumetics Technology with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Maple Leaf.
Diversification Opportunities for Ocumetics Technology and Maple Leaf
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ocumetics and Maple is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Maple Leaf go up and down completely randomly.
Pair Corralation between Ocumetics Technology and Maple Leaf
Assuming the 90 days horizon Ocumetics Technology Corp is expected to under-perform the Maple Leaf. In addition to that, Ocumetics Technology is 1.69 times more volatile than Maple Leaf Foods. It trades about -0.18 of its total potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.2 per unit of volatility. If you would invest 2,146 in Maple Leaf Foods on August 28, 2024 and sell it today you would earn a total of 188.00 from holding Maple Leaf Foods or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ocumetics Technology Corp vs. Maple Leaf Foods
Performance |
| Timeline |
| Ocumetics Technology Corp |
| Maple Leaf Foods |
Ocumetics Technology and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocumetics Technology and Maple Leaf
The main advantage of trading using opposite Ocumetics Technology and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocumetics Technology position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Ocumetics Technology vs. VentriPoint Diagnostics | Ocumetics Technology vs. Sirona Biochem Corp | Ocumetics Technology vs. Reliq Health Technologies | Ocumetics Technology vs. Microbix Biosystems |
| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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