Correlation Between MEDIFAST INC and Franchise
Can any of the company-specific risk be diversified away by investing in both MEDIFAST INC and Franchise 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 MEDIFAST INC and Franchise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIFAST INC and Franchise Group, you can compare the effects of market volatilities on MEDIFAST INC and Franchise 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 MEDIFAST INC with a short position of Franchise. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIFAST INC and Franchise.
Diversification Opportunities for MEDIFAST INC and Franchise
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDIFAST and Franchise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MEDIFAST INC and Franchise Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franchise Group and MEDIFAST INC 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 MEDIFAST INC are associated (or correlated) with Franchise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franchise Group has no effect on the direction of MEDIFAST INC i.e., MEDIFAST INC and Franchise go up and down completely randomly.
Pair Corralation between MEDIFAST INC and Franchise
If you would invest 0.00 in Franchise Group on December 29, 2023 and sell it today you would earn a total of 0.00 from holding Franchise Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.61% |
Values | Daily Returns |
MEDIFAST INC vs. Franchise Group
Performance |
Timeline |
MEDIFAST INC |
Franchise Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
MEDIFAST INC and Franchise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEDIFAST INC and Franchise
The main advantage of trading using opposite MEDIFAST INC and Franchise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIFAST INC position performs unexpectedly, Franchise 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 Franchise will offset losses from the drop in Franchise's long position.MEDIFAST INC vs. Empire Global Gaming | MEDIFAST INC vs. FlexShopper | MEDIFAST INC vs. Ainsworth Game Technology | MEDIFAST INC vs. Electronic Arts |
Franchise vs. Uber Technologies | Franchise vs. Radcom | Franchise vs. Texas Roadhouse | Franchise vs. BJs Restaurants |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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