Correlation Between Maple Leaf and Rubicon Organics
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Rubicon Organics 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 Maple Leaf and Rubicon Organics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Rubicon Organics, you can compare the effects of market volatilities on Maple Leaf and Rubicon Organics 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 Maple Leaf with a short position of Rubicon Organics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Rubicon Organics.
Diversification Opportunities for Maple Leaf and Rubicon Organics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maple and Rubicon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Rubicon Organics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon Organics and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with Rubicon Organics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Organics has no effect on the direction of Maple Leaf i.e., Maple Leaf and Rubicon Organics go up and down completely randomly.
Pair Corralation between Maple Leaf and Rubicon Organics
Assuming the 90 days trading horizon Maple Leaf Foods is expected to generate 0.61 times more return on investment than Rubicon Organics. However, Maple Leaf Foods is 1.63 times less risky than Rubicon Organics. It trades about -0.04 of its potential returns per unit of risk. Rubicon Organics is currently generating about -0.16 per unit of risk. If you would invest 2,737 in Maple Leaf Foods on September 3, 2025 and sell it today you would lose (229.00) from holding Maple Leaf Foods or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. Rubicon Organics
Performance |
| Timeline |
| Maple Leaf Foods |
| Rubicon Organics |
Maple Leaf and Rubicon Organics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Rubicon Organics
The main advantage of trading using opposite Maple Leaf and Rubicon Organics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Rubicon Organics 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 Rubicon Organics will offset losses from the drop in Rubicon Organics' long position.| Maple Leaf vs. Global Crossing Airlines | Maple Leaf vs. Hemisphere Energy | Maple Leaf vs. SalesforceCom CDR | Maple Leaf vs. Verizon Communications CDR |
| Rubicon Organics vs. Diamond Estates Wines | Rubicon Organics vs. Capstone Mining Corp | Rubicon Organics vs. Canlan Ice Sports | Rubicon Organics vs. Aris Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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