Correlation Between McDonalds and All For

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

By analyzing existing cross correlation between McDonalds and All For One, you can compare the effects of market volatilities on McDonalds and All For 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 McDonalds with a short position of All For. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and All For.

Diversification Opportunities for McDonalds and All For

0.0

Correlation Coefficient

McDonalds  All For

Pay attention - limited upside

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

Pair Corralation between McDonalds and All For

If you would invest  28,794  in McDonalds on December 28, 2024 and sell it today you would earn a total of  2,475  from holding McDonalds or generate 8.6% return on investment over 90 days.

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

McDonalds  vs.  All For One

McDonalds

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, McDonalds may actually be approaching a critical reversion point that can send shares even higher in April 2025.

All For One

Risk-Adjusted Performance

Very Weak

Over the last 90 days All For One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, All For is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with McDonalds and All For

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

The idea behind McDonalds and All For One 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.