Correlation Between MTY Food and Vizsla Silver

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

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

Diversification Opportunities for MTY Food and Vizsla Silver

-0.26

Correlation Coefficient

MTY Food  Vizsla Silver

Very good diversification

The 3 months correlation between MTY and Vizsla is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Vizsla Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vizsla Silver Corp and MTY Food 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 MTY Food Group are associated (or correlated) with Vizsla Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vizsla Silver Corp has no effect on the direction of MTY Food i.e., MTY Food and Vizsla Silver go up and down completely randomly.

Pair Corralation between MTY Food and Vizsla Silver

Assuming the 90 days trading horizon MTY Food Group is expected to generate 0.45 times more return on investment than Vizsla Silver. However, MTY Food Group is 2.2 times less risky than Vizsla Silver. It trades about 0.1 of its potential returns per unit of risk. Vizsla Silver Corp is currently generating about 0.02 per unit of risk. If you would invest  4,540  in MTY Food Group on October 25, 2024 and sell it today you would earn a total of  431.00  from holding MTY Food Group or generate 9.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

MTY Food Group  vs.  Vizsla Silver Corp

MTY Food Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MTY Food Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, MTY Food may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Vizsla Silver Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vizsla Silver Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Vizsla Silver is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MTY Food and Vizsla Silver

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

The idea behind MTY Food Group and Vizsla Silver Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.