Correlation Between URBAN OUTFITTERS and MTY Food
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS and MTY Food 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 URBAN OUTFITTERS and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and MTY Food Group, you can compare the effects of market volatilities on URBAN OUTFITTERS and MTY Food 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 URBAN OUTFITTERS with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and MTY Food.
Diversification Opportunities for URBAN OUTFITTERS and MTY Food
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between URBAN and MTY is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group and URBAN OUTFITTERS 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 URBAN OUTFITTERS are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of URBAN OUTFITTERS i.e., URBAN OUTFITTERS and MTY Food go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and MTY Food
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to under-perform the MTY Food. In addition to that, URBAN OUTFITTERS is 1.32 times more volatile than MTY Food Group. It trades about -0.08 of its total potential returns per unit of risk. MTY Food Group is currently generating about 0.14 per unit of volatility. If you would invest 3,165 in MTY Food Group on November 7, 2024 and sell it today you would earn a total of 170.00 from holding MTY Food Group or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. MTY Food Group
Performance |
| Timeline |
| URBAN OUTFITTERS |
| MTY Food Group |
URBAN OUTFITTERS and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and MTY Food
The main advantage of trading using opposite URBAN OUTFITTERS and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| URBAN OUTFITTERS vs. MELIA HOTELS | URBAN OUTFITTERS vs. KENEDIX OFFICE INV | URBAN OUTFITTERS vs. Haverty Furniture Companies | URBAN OUTFITTERS vs. CITY OFFICE REIT |
| MTY Food vs. McDonalds | MTY Food vs. Starbucks | MTY Food vs. Chipotle Mexican Grill | MTY Food vs. Compass Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |