Correlation Between IMC SA and Mlk Foods

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

By analyzing existing cross correlation between IMC SA and Mlk Foods Public, you can compare the effects of market volatilities on IMC SA and Mlk Foods 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 IMC SA with a short position of Mlk Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMC SA and Mlk Foods.

Diversification Opportunities for IMC SA and Mlk Foods

0.0

Correlation Coefficient

IMC SA  Mlk Foods

Pay attention - limited upside

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

Pair Corralation between IMC SA and Mlk Foods

If you would invest  117.00  in Mlk Foods Public on October 7, 2024 and sell it today you would earn a total of  16.00  from holding Mlk Foods Public or generate 13.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

IMC SA  vs.  Mlk Foods Public

IMC SA

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days IMC SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IMC SA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mlk Foods Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mlk Foods Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Mlk Foods reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IMC SA and Mlk Foods

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

The idea behind IMC SA and Mlk Foods Public 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.