Correlation Between McDonalds and OneStream,

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

By analyzing existing cross correlation between McDonalds and OneStream, Class A, you can compare the effects of market volatilities on McDonalds and OneStream, 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 OneStream,. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and OneStream,.

Diversification Opportunities for McDonalds and OneStream,

-0.63

Correlation Coefficient

McDonalds  OneStream,

Excellent diversification

The 3 months correlation between McDonalds and OneStream, is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and OneStream, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneStream, Class A 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 OneStream,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneStream, Class A has no effect on the direction of McDonalds i.e., McDonalds and OneStream, go up and down completely randomly.

Pair Corralation between McDonalds and OneStream,

Considering the 90-day investment horizon McDonalds is expected to generate 0.38 times more return on investment than OneStream,. However, McDonalds is 2.64 times less risky than OneStream,. It trades about 0.03 of its potential returns per unit of risk. OneStream, Class A is currently generating about -0.02 per unit of risk. If you would invest  28,374  in McDonalds on December 22, 2024 and sell it today you would earn a total of  2,170  from holding McDonalds or generate 7.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	57.64%
Values	Daily Returns

McDonalds  vs.  OneStream, Class A

McDonalds

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, McDonalds is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

OneStream, Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneStream, Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with McDonalds and OneStream,

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

The idea behind McDonalds and OneStream, Class A 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 Commodity Directory module to find actively traded commodities issued by global exchanges.