Correlation Between Dividend Growth and Maple Leaf

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

By analyzing existing cross correlation between Dividend Growth Split and Maple Leaf Foods, you can compare the effects of market volatilities on Dividend Growth and Maple Leaf 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 Dividend Growth with a short position of Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend Growth and Maple Leaf.

Diversification Opportunities for Dividend Growth and Maple Leaf

0.95

Correlation Coefficient

Dividend Growth  Maple Leaf

Almost no diversification

The 3 months correlation between Dividend and Maple is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dividend Growth Split and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and Dividend Growth 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 Dividend Growth Split are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Dividend Growth i.e., Dividend Growth and Maple Leaf go up and down completely randomly.

Pair Corralation between Dividend Growth and Maple Leaf

Assuming the 90 days trading horizon Dividend Growth is expected to generate 1.15 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, Dividend Growth Split is 2.03 times less risky than Maple Leaf. It trades about 0.55 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  2,428  in Maple Leaf Foods on April 22, 2025 and sell it today you would earn a total of  609.00  from holding Maple Leaf Foods or generate 25.08% return on investment over 90 days.

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

Dividend Growth Split  vs.  Maple Leaf Foods

Dividend Growth Split

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend Growth Split are ranked lower than 42 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dividend Growth displayed solid returns over the last few months and may actually be approaching a breakup point.

Maple Leaf Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Foods are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Maple Leaf displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dividend Growth and Maple Leaf

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

The idea behind Dividend Growth Split and Maple Leaf Foods 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.