Correlation Between Retail Food and Group 6
Can any of the company-specific risk be diversified away by investing in both Retail Food and Group 6 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 Retail Food and Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Food Group and Group 6 Metals, you can compare the effects of market volatilities on Retail Food and Group 6 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 Retail Food with a short position of Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Food and Group 6.
Diversification Opportunities for Retail Food and Group 6
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Retail and Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Retail Food Group and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals and Retail Food 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 Retail Food Group are associated (or correlated) with Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of Retail Food i.e., Retail Food and Group 6 go up and down completely randomly.
Pair Corralation between Retail Food and Group 6
If you would invest 2.50 in Group 6 Metals on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Group 6 Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Retail Food Group vs. Group 6 Metals
Performance |
| Timeline |
| Retail Food Group |
| Group 6 Metals |
Retail Food and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Food and Group 6
The main advantage of trading using opposite Retail Food and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Food position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| Retail Food vs. Aussie Broadband | Retail Food vs. A1 Investments Resources | Retail Food vs. Navigator Global Investments | Retail Food vs. Hotel Property Investments |
| Group 6 vs. Queste Communications | Group 6 vs. Ras Technology Holdings | Group 6 vs. Ainsworth Game Technology | Group 6 vs. 29Metals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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