Correlation Between Enduro Metals and MTY Food
Can any of the company-specific risk be diversified away by investing in both Enduro Metals 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 Enduro Metals and MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enduro Metals Corp and MTY Food Group, you can compare the effects of market volatilities on Enduro Metals 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 Enduro Metals with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enduro Metals and MTY Food.
Diversification Opportunities for Enduro Metals and MTY Food
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enduro and MTY is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Enduro Metals Corp 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 Enduro Metals 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 Enduro Metals Corp 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 Enduro Metals i.e., Enduro Metals and MTY Food go up and down completely randomly.
Pair Corralation between Enduro Metals and MTY Food
Assuming the 90 days trading horizon Enduro Metals Corp is expected to under-perform the MTY Food. In addition to that, Enduro Metals is 3.44 times more volatile than MTY Food Group. It trades about -0.04 of its total potential returns per unit of risk. MTY Food Group is currently generating about -0.02 per unit of volatility. If you would invest 6,008 in MTY Food Group on October 10, 2024 and sell it today you would lose (1,348) from holding MTY Food Group or give up 22.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Enduro Metals Corp vs. MTY Food Group
Performance |
Timeline |
Enduro Metals Corp |
MTY Food Group |
Enduro Metals and MTY Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enduro Metals and MTY Food
The main advantage of trading using opposite Enduro Metals and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enduro Metals 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.Enduro Metals vs. Scottie Resources Corp | Enduro Metals vs. Goliath Resources | Enduro Metals vs. Tudor Gold Corp | Enduro Metals vs. Brixton Metals |
MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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