Correlation Between EBRO FOODS and Moneysupermarket

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

By analyzing existing cross correlation between EBRO FOODS and Moneysupermarket Group PLC, you can compare the effects of market volatilities on EBRO FOODS and Moneysupermarket 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 EBRO FOODS with a short position of Moneysupermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBRO FOODS and Moneysupermarket.

Diversification Opportunities for EBRO FOODS and Moneysupermarket

0.79

Correlation Coefficient

EBRO FOODS  Moneysupermarket

Poor diversification

The 3 months correlation between EBRO and Moneysupermarket is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding EBRO FOODS and Moneysupermarket Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneysupermarket and EBRO FOODS 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 EBRO FOODS are associated (or correlated) with Moneysupermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneysupermarket has no effect on the direction of EBRO FOODS i.e., EBRO FOODS and Moneysupermarket go up and down completely randomly.

Pair Corralation between EBRO FOODS and Moneysupermarket

Assuming the 90 days trading horizon EBRO FOODS is expected to generate 270.0 times less return on investment than Moneysupermarket. In addition to that, EBRO FOODS is 1.03 times more volatile than Moneysupermarket Group PLC. It trades about 0.0 of its total potential returns per unit of risk. Moneysupermarket Group PLC is currently generating about 0.2 per unit of volatility. If you would invest  236.00  in Moneysupermarket Group PLC on April 2, 2025 and sell it today you would earn a total of  8.00  from holding Moneysupermarket Group PLC or generate 3.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

EBRO FOODS  vs.  Moneysupermarket Group PLC

EBRO FOODS

Risk-Adjusted Performance

OK

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

Moneysupermarket

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Moneysupermarket Group PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Moneysupermarket reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EBRO FOODS and Moneysupermarket

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

The idea behind EBRO FOODS and Moneysupermarket Group PLC 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.