Correlation Between MCCORMICK and Philip Morris
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By analyzing existing cross correlation between MCCORMICK INC 325 and Philip Morris International, you can compare the effects of market volatilities on MCCORMICK and Philip Morris 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 MCCORMICK with a short position of Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCCORMICK and Philip Morris.
Diversification Opportunities for MCCORMICK and Philip Morris
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCCORMICK and Philip is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MCCORMICK INC 325 and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern and MCCORMICK 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 MCCORMICK INC 325 are associated (or correlated) with Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of MCCORMICK i.e., MCCORMICK and Philip Morris go up and down completely randomly.
Pair Corralation between MCCORMICK and Philip Morris
Assuming the 90 days trading horizon MCCORMICK INC 325 is expected to under-perform the Philip Morris. But the bond apears to be less risky and, when comparing its historical volatility, MCCORMICK INC 325 is 1.99 times less risky than Philip Morris. The bond trades about -0.3 of its potential returns per unit of risk. The Philip Morris International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,422 in Philip Morris International on September 13, 2024 and sell it today you would earn a total of 332.50 from holding Philip Morris International or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
MCCORMICK INC 325 vs. Philip Morris International
Performance |
| Timeline |
| MCCORMICK INC 325 |
| Philip Morris Intern |
MCCORMICK and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCCORMICK and Philip Morris
The main advantage of trading using opposite MCCORMICK and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCCORMICK position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| MCCORMICK vs. Marfrig Global Foods | MCCORMICK vs. NH Foods Ltd | MCCORMICK vs. Tencent Music Entertainment | MCCORMICK vs. Vestis |
| Philip Morris vs. Turning Point Brands | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Kaival Brands Innovations | Philip Morris vs. PT Hanjaya Mandala |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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