Correlation Between Wesfarmers and My Foodie
Can any of the company-specific risk be diversified away by investing in both Wesfarmers and My Foodie 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 Wesfarmers and My Foodie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesfarmers and My Foodie Box, you can compare the effects of market volatilities on Wesfarmers and My Foodie 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 Wesfarmers with a short position of My Foodie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesfarmers and My Foodie.
Diversification Opportunities for Wesfarmers and My Foodie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wesfarmers and MBX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wesfarmers and My Foodie Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Foodie Box and Wesfarmers 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 Wesfarmers are associated (or correlated) with My Foodie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Foodie Box has no effect on the direction of Wesfarmers i.e., Wesfarmers and My Foodie go up and down completely randomly.
Pair Corralation between Wesfarmers and My Foodie
If you would invest 7,546 in Wesfarmers on November 27, 2024 and sell it today you would earn a total of 142.00 from holding Wesfarmers or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesfarmers vs. My Foodie Box
Performance |
| Timeline |
| Wesfarmers |
| My Foodie Box |
Wesfarmers and My Foodie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesfarmers and My Foodie
The main advantage of trading using opposite Wesfarmers and My Foodie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesfarmers position performs unexpectedly, My Foodie 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 My Foodie will offset losses from the drop in My Foodie's long position.| Wesfarmers vs. Diversified United Investment | Wesfarmers vs. Mayfield Childcare | Wesfarmers vs. Sports Entertainment Group | Wesfarmers vs. BKI Investment |
| My Foodie vs. Dalaroo Metals | My Foodie vs. Australian Agricultural | My Foodie vs. Aeon Metals | My Foodie vs. Polymetals Resources |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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