Correlation Between MTY Food and Applied Materials,

Can any of the company-specific risk be diversified away by investing in both MTY Food and Applied Materials, 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 Applied Materials, 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 Applied Materials,, you can compare the effects of market volatilities on MTY Food and Applied Materials, 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 Applied Materials,. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Applied Materials,.

Diversification Opportunities for MTY Food and Applied Materials,

0.03

Correlation Coefficient

MTY Food  Applied Materials,

Significant diversification

The 3 months correlation between MTY and Applied is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Applied Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials, 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 Applied Materials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials, has no effect on the direction of MTY Food i.e., MTY Food and Applied Materials, go up and down completely randomly.

Pair Corralation between MTY Food and Applied Materials,

Assuming the 90 days trading horizon MTY Food is expected to generate 18.49 times less return on investment than Applied Materials,. But when comparing it to its historical volatility, MTY Food Group is 1.04 times less risky than Applied Materials,. It trades about 0.01 of its potential returns per unit of risk. Applied Materials, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,552  in Applied Materials, on April 20, 2025 and sell it today you would earn a total of  619.00  from holding Applied Materials, or generate 39.88% return on investment over 90 days.

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

MTY Food Group  vs.  Applied Materials,

MTY Food Group

Risk-Adjusted Performance

Weak

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

Applied Materials,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials, are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Applied Materials, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MTY Food and Applied Materials,

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

The idea behind MTY Food Group and Applied Materials, 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.

Check out your portfolio center.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.