Correlation Between CAL MAINE and Addtech AB

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

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

Diversification Opportunities for CAL MAINE and Addtech AB

0.27

Correlation Coefficient

CAL MAINE  Addtech AB

Modest diversification

The 3 months correlation between CAL and Addtech is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CAL MAINE FOODS and Addtech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addtech AB and CAL MAINE 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 CAL MAINE FOODS are associated (or correlated) with Addtech AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addtech AB has no effect on the direction of CAL MAINE i.e., CAL MAINE and Addtech AB go up and down completely randomly.

Pair Corralation between CAL MAINE and Addtech AB

Assuming the 90 days trading horizon CAL MAINE is expected to generate 2.41 times less return on investment than Addtech AB. But when comparing it to its historical volatility, CAL MAINE FOODS is 2.17 times less risky than Addtech AB. It trades about 0.1 of its potential returns per unit of risk. Addtech AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,838  in Addtech AB on April 20, 2025 and sell it today you would earn a total of  180.00  from holding Addtech AB or generate 6.34% return on investment over 90 days.

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

CAL MAINE FOODS  vs.  Addtech AB

CAL MAINE FOODS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CAL MAINE FOODS are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CAL MAINE exhibited solid returns over the last few months and may actually be approaching a breakup point.

Addtech AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Addtech AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Addtech AB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CAL MAINE and Addtech AB

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

The idea behind CAL MAINE FOODS and Addtech AB 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.