Correlation Between McDonalds and ScanTech
Can any of the company-specific risk be diversified away by investing in both McDonalds and ScanTech 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 McDonalds and ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McDonalds and ScanTech AI Systems, you can compare the effects of market volatilities on McDonalds and ScanTech 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 McDonalds with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of McDonalds and ScanTech.
Diversification Opportunities for McDonalds and ScanTech
Very good diversification
The 3 months correlation between McDonalds and ScanTech is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and McDonalds 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 McDonalds are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of McDonalds i.e., McDonalds and ScanTech go up and down completely randomly.
Pair Corralation between McDonalds and ScanTech
Considering the 90-day investment horizon McDonalds is expected to generate 0.1 times more return on investment than ScanTech. However, McDonalds is 10.27 times less risky than ScanTech. It trades about 0.04 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.01 per unit of risk. If you would invest 30,358 in McDonalds on September 12, 2025 and sell it today you would earn a total of 613.00 from holding McDonalds or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
McDonalds vs. ScanTech AI Systems
Performance |
| Timeline |
| McDonalds |
| ScanTech AI Systems |
McDonalds and ScanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McDonalds and ScanTech
The main advantage of trading using opposite McDonalds and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McDonalds position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza Common | McDonalds vs. Yum Brands |
| ScanTech vs. Electra Battery Materials | ScanTech vs. SenesTech | ScanTech vs. Huadi International Group | ScanTech vs. Algoma Steel Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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