Correlation Between BBB Foods and Emera Maine
Can any of the company-specific risk be diversified away by investing in both BBB Foods and Emera Maine 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 BBB Foods and Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Emera Maine PFD, you can compare the effects of market volatilities on BBB Foods and Emera Maine 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 BBB Foods with a short position of Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Emera Maine.
Diversification Opportunities for BBB Foods and Emera Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BBB and Emera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD and BBB 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 BBB Foods are associated (or correlated) with Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of BBB Foods i.e., BBB Foods and Emera Maine go up and down completely randomly.
Pair Corralation between BBB Foods and Emera Maine
If you would invest 3,003 in BBB Foods on September 12, 2024 and sell it today you would lose (11.00) from holding BBB Foods or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
BBB Foods vs. Emera Maine PFD
Performance |
| Timeline |
| BBB Foods |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BBB Foods and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Emera Maine
The main advantage of trading using opposite BBB Foods and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.| BBB Foods vs. Costco Wholesale Corp | BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Dollar Tree | BBB Foods vs. Dollar General |
| Emera Maine vs. Amkor Technology | Emera Maine vs. Asure Software | Emera Maine vs. Taiwan Semiconductor Manufacturing | Emera Maine vs. Kulicke and Soffa |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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