Correlation Between Staatl Mineralbrunnen and CAL MAINE

Can any of the company-specific risk be diversified away by investing in both Staatl Mineralbrunnen and CAL MAINE 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 Staatl Mineralbrunnen and CAL MAINE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Staatl Mineralbrunnen AG and CAL MAINE FOODS, you can compare the effects of market volatilities on Staatl Mineralbrunnen and CAL MAINE 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 Staatl Mineralbrunnen with a short position of CAL MAINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staatl Mineralbrunnen and CAL MAINE.

Diversification Opportunities for Staatl Mineralbrunnen and CAL MAINE

0.0

Correlation Coefficient

Staatl Mineralbrunnen  CAL MAINE

Pay attention - limited upside

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

Pair Corralation between Staatl Mineralbrunnen and CAL MAINE

If you would invest  4,449  in CAL MAINE FOODS on September 24, 2024 and sell it today you would earn a total of  5,527  from holding CAL MAINE FOODS or generate 124.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Staatl Mineralbrunnen AG  vs.  CAL MAINE FOODS

Staatl Mineralbrunnen

Risk-Adjusted Performance

0 of 100

Very Weak

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

CAL MAINE FOODS

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CAL MAINE FOODS are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CAL MAINE exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Staatl Mineralbrunnen and CAL MAINE

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

The idea behind Staatl Mineralbrunnen AG and CAL MAINE 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.