Correlation Between My Foodie and Chalice Mining

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

By analyzing existing cross correlation between My Foodie Box and Chalice Mining Limited, you can compare the effects of market volatilities on My Foodie and Chalice Mining 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 My Foodie with a short position of Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and Chalice Mining.

Diversification Opportunities for My Foodie and Chalice Mining

0.0

Correlation Coefficient

My Foodie  Chalice Mining

Pay attention - limited upside

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

Pair Corralation between My Foodie and Chalice Mining

Assuming the 90 days trading horizon My Foodie Box is expected to under-perform the Chalice Mining. But the stock apears to be less risky and, when comparing its historical volatility, My Foodie Box is 2.95 times less risky than Chalice Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Chalice Mining Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  297.00  in Chalice Mining Limited on December 2, 2024 and sell it today you would lose (162.00) from holding Chalice Mining Limited or give up 54.55% of portfolio value over 90 days.

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

My Foodie Box  vs.  Chalice Mining Limited

My Foodie Box

Risk-Adjusted Performance

Very Weak

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

Chalice Mining

Risk-Adjusted Performance

Very Weak

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

Pair Trading with My Foodie and Chalice Mining

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

The idea behind My Foodie Box and Chalice Mining Limited 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 Stocks Directory module to find actively traded stocks across global markets.