Correlation Between TRADEDOUBLER and PATTIES FOODS
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and PATTIES FOODS 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 TRADEDOUBLER and PATTIES FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and PATTIES FOODS , you can compare the effects of market volatilities on TRADEDOUBLER and PATTIES FOODS 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 TRADEDOUBLER with a short position of PATTIES FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and PATTIES FOODS.
Diversification Opportunities for TRADEDOUBLER and PATTIES FOODS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TRADEDOUBLER and PATTIES is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and PATTIES FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTIES FOODS and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with PATTIES FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTIES FOODS has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and PATTIES FOODS go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and PATTIES FOODS
Assuming the 90 days horizon TRADEDOUBLER is expected to generate 3.42 times less return on investment than PATTIES FOODS. But when comparing it to its historical volatility, TRADEDOUBLER AB SK is 1.22 times less risky than PATTIES FOODS. It trades about 0.03 of its potential returns per unit of risk. PATTIES FOODS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 24.00 in PATTIES FOODS on October 26, 2024 and sell it today you would earn a total of 5.00 from holding PATTIES FOODS or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. PATTIES FOODS
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| PATTIES FOODS |
TRADEDOUBLER and PATTIES FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and PATTIES FOODS
The main advantage of trading using opposite TRADEDOUBLER and PATTIES FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, PATTIES FOODS 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 PATTIES FOODS will offset losses from the drop in PATTIES FOODS's long position.| TRADEDOUBLER vs. WPP PLC | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. Origin Agritech | TRADEDOUBLER vs. Identiv |
| PATTIES FOODS vs. Heidelberg Materials AG | PATTIES FOODS vs. Rayonier Advanced Materials | PATTIES FOODS vs. TRADEDOUBLER AB SK | PATTIES FOODS vs. GOODYEAR T RUBBER |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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