Correlation Between Blockmate Ventures and MTY Food

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

By analyzing existing cross correlation between Blockmate Ventures and MTY Food Group, you can compare the effects of market volatilities on Blockmate Ventures 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 Blockmate Ventures with a short position of MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockmate Ventures and MTY Food.

Diversification Opportunities for Blockmate Ventures and MTY Food

0.43

Correlation Coefficient

Blockmate Ventures  MTY Food

Very weak diversification

The 3 months correlation between Blockmate and MTY is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blockmate Ventures 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 Blockmate Ventures 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 Blockmate Ventures 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 Blockmate Ventures i.e., Blockmate Ventures and MTY Food go up and down completely randomly.

Pair Corralation between Blockmate Ventures and MTY Food

Assuming the 90 days trading horizon Blockmate Ventures is expected to under-perform the MTY Food. In addition to that, Blockmate Ventures is 4.45 times more volatile than MTY Food Group. It trades about -0.05 of its total potential returns per unit of risk. MTY Food Group is currently generating about -0.05 per unit of volatility. If you would invest  4,636  in MTY Food Group on December 21, 2024 and sell it today you would lose (399.00) from holding MTY Food Group or give up 8.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Blockmate Ventures  vs.  MTY Food Group

Blockmate Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blockmate Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

MTY Food Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days MTY Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Blockmate Ventures and MTY Food

The main advantage of trading using opposite Blockmate Ventures and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockmate Ventures 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.

The idea behind Blockmate Ventures and MTY Food Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.