Correlation Between My Foodie and Kip McGrath

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Can any of the company-specific risk be diversified away by investing in both My Foodie and Kip McGrath 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 Kip McGrath 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 Kip McGrath Education, you can compare the effects of market volatilities on My Foodie and Kip McGrath 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 Kip McGrath. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and Kip McGrath.

Diversification Opportunities for My Foodie and Kip McGrath

MBXKipDiversified AwayMBXKipDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between My Foodie and Kip McGrath

If you would invest  41.00  in Kip McGrath Education on October 26, 2024 and sell it today you would earn a total of  5.00  from holding Kip McGrath Education or generate 12.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.39%
ValuesDaily Returns

My Foodie Box  vs.  Kip McGrath Education

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 51015202530
JavaScript chart by amCharts 3.21.15MBX KME
       Timeline  
My Foodie Box 

Risk-Adjusted Performance

0 of 100

 
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Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0040.00405
Kip McGrath Education 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kip McGrath Education are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Kip McGrath unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.420.440.460.480.50.52

My Foodie and Kip McGrath Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15MBX KME
       Returns  

Pair Trading with My Foodie and Kip McGrath

The main advantage of trading using opposite My Foodie and Kip McGrath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Foodie position performs unexpectedly, Kip McGrath 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 Kip McGrath will offset losses from the drop in Kip McGrath's long position.
The idea behind My Foodie Box and Kip McGrath Education 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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