Correlation Between Health and Maggie Beer

Can any of the company-specific risk be diversified away by investing in both Health and Maggie Beer 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 Health and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Health and Plant and Maggie Beer Holdings, you can compare the effects of market volatilities on Health and Maggie Beer 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 Health with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health and Maggie Beer.

Diversification Opportunities for Health and Maggie Beer

0.0

Correlation Coefficient

Health  Maggie Beer

Pay attention - limited upside

The 3 months correlation between Health and Maggie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Health and Plant and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Health 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 Health and Plant are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Health i.e., Health and Maggie Beer go up and down completely randomly.

Pair Corralation between Health and Maggie Beer

If you would invest  5.70  in Maggie Beer Holdings on October 25, 2024 and sell it today you would earn a total of  0.10  from holding Maggie Beer Holdings or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Health and Plant  vs.  Maggie Beer Holdings

Health and Plant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Health and Plant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Health is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Maggie Beer Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maggie Beer Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, Maggie Beer is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Health and Maggie Beer

The main advantage of trading using opposite Health and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.

The idea behind Health and Plant and Maggie Beer Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.