Correlation Between My Foodie and FOS Capital

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

By analyzing existing cross correlation between My Foodie BOX and FOS Capital, you can compare the effects of market volatilities on My Foodie and FOS Capital 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 My Foodie with a short position of FOS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Foodie and FOS Capital.

Diversification Opportunities for My Foodie and FOS Capital

0.0

Correlation Coefficient

My Foodie  FOS Capital

Pay attention - limited upside

The 3 months correlation between MBX and FOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding My Foodie BOX and FOS Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOS Capital and My Foodie 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 My Foodie BOX are associated (or correlated) with FOS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOS Capital has no effect on the direction of My Foodie i.e., My Foodie and FOS Capital go up and down completely randomly.

Pair Corralation between My Foodie and FOS Capital

If you would invest  32.00  in FOS Capital on April 24, 2025 and sell it today you would lose (1.00) from holding FOS Capital or give up 3.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

My Foodie BOX  vs.  FOS Capital

My Foodie BOX

Risk-Adjusted Performance

Very Weak

Over the last 90 days My Foodie BOX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, My Foodie is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

FOS Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days FOS Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, FOS Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with My Foodie and FOS Capital

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

The idea behind My Foodie BOX and FOS Capital 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.