Correlation Between MTY Food and Quorum Information
Can any of the company-specific risk be diversified away by investing in both MTY Food and Quorum Information 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 Quorum Information 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 Quorum Information Technologies, you can compare the effects of market volatilities on MTY Food and Quorum Information 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 Quorum Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Quorum Information.
Diversification Opportunities for MTY Food and Quorum Information
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MTY and Quorum is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Quorum Information Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quorum Information 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 Quorum Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quorum Information has no effect on the direction of MTY Food i.e., MTY Food and Quorum Information go up and down completely randomly.
Pair Corralation between MTY Food and Quorum Information
Assuming the 90 days trading horizon MTY Food Group is expected to generate 1.27 times more return on investment than Quorum Information. However, MTY Food is 1.27 times more volatile than Quorum Information Technologies. It trades about -0.01 of its potential returns per unit of risk. Quorum Information Technologies is currently generating about -0.28 per unit of risk. If you would invest 4,145 in MTY Food Group on April 23, 2025 and sell it today you would lose (131.00) from holding MTY Food Group or give up 3.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MTY Food Group vs. Quorum Information Technologie
Performance |
Timeline |
MTY Food Group |
Quorum Information |
MTY Food and Quorum Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MTY Food and Quorum Information
The main advantage of trading using opposite MTY Food and Quorum Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food position performs unexpectedly, Quorum Information 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 Quorum Information will offset losses from the drop in Quorum Information's long position.MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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