Correlation Between Convenience Foods and EB Creasy
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By analyzing existing cross correlation between Convenience Foods PLC and EB Creasy and, you can compare the effects of market volatilities on Convenience Foods and EB Creasy 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 Convenience Foods with a short position of EB Creasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Convenience Foods and EB Creasy.
Diversification Opportunities for Convenience Foods and EB Creasy
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Convenience and EBCRN0000 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Convenience Foods PLC and EB Creasy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EB Creasy and Convenience Foods 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 Convenience Foods PLC are associated (or correlated) with EB Creasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EB Creasy has no effect on the direction of Convenience Foods i.e., Convenience Foods and EB Creasy go up and down completely randomly.
Pair Corralation between Convenience Foods and EB Creasy
Assuming the 90 days trading horizon Convenience Foods PLC is expected to generate 1.05 times more return on investment than EB Creasy. However, Convenience Foods is 1.05 times more volatile than EB Creasy and. It trades about 0.15 of its potential returns per unit of risk. EB Creasy and is currently generating about 0.12 per unit of risk. If you would invest 77,100 in Convenience Foods PLC on September 12, 2024 and sell it today you would earn a total of 13,375 from holding Convenience Foods PLC or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.61% |
| Values | Daily Returns |
Convenience Foods PLC vs. EB Creasy and
Performance |
| Timeline |
| Convenience Foods PLC |
| EB Creasy |
Convenience Foods and EB Creasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Convenience Foods and EB Creasy
The main advantage of trading using opposite Convenience Foods and EB Creasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Convenience Foods position performs unexpectedly, EB Creasy 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 EB Creasy will offset losses from the drop in EB Creasy's long position.| Convenience Foods vs. Tangerine Beach Hotels | Convenience Foods vs. Colombo Investment Trust | Convenience Foods vs. Arpico Insurance | Convenience Foods vs. Sri Lanka Telecom |
| EB Creasy vs. Lanka Credit and | EB Creasy vs. ACL Plastics PLC | EB Creasy vs. PEOPLES LEASING FINANCE | EB Creasy vs. Seylan Bank PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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