Correlation Between Retail Food and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Retail Food and Maggie Beer 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 Maggie Beer 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 Maggie Beer Holdings, you can compare the effects of market volatilities on Retail Food and Maggie Beer 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 Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Food and Maggie Beer.
Diversification Opportunities for Retail Food and Maggie Beer
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Retail and Maggie is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Retail Food Group and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings 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 Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Retail Food i.e., Retail Food and Maggie Beer go up and down completely randomly.
Pair Corralation between Retail Food and Maggie Beer
Assuming the 90 days trading horizon Retail Food Group is expected to under-perform the Maggie Beer. In addition to that, Retail Food is 1.18 times more volatile than Maggie Beer Holdings. It trades about -0.24 of its total potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.05 per unit of volatility. If you would invest 5.70 in Maggie Beer Holdings on October 12, 2024 and sell it today you would earn a total of 0.10 from holding Maggie Beer Holdings or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Retail Food Group vs. Maggie Beer Holdings
Performance |
| Timeline |
| Retail Food Group |
| Maggie Beer Holdings |
Retail Food and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Food and Maggie Beer
The main advantage of trading using opposite Retail Food and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Food position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Retail Food vs. Hammer Metals | Retail Food vs. Data3 | Retail Food vs. Collins Foods | Retail Food vs. ABACUS STORAGE KING |
| Maggie Beer vs. Retail Food Group | Maggie Beer vs. Vulcan Steel | Maggie Beer vs. Truscott Mining Corp | Maggie Beer vs. Phoslock Environmental Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |