Correlation Between MTY Food and Quorum Information

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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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

MTY Food Group  vs.  Quorum Information Technologie

 Performance 
       Timeline  
MTY Food Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days MTY Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. 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.
Quorum Information 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Quorum Information Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

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.
The idea behind MTY Food Group and Quorum Information Technologies 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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