McDonalds Correlations
| MCD Stock | MXN 4,650 107.33 2.26% |
The correlation of McDonalds is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as McDonalds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McDonalds moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Good diversification
The correlation between McDonalds and NYA is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and NYA in the same portfolio, assuming nothing else is changed.
McDonalds |
The ability to find closely correlated positions to McDonalds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace McDonalds when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back McDonalds - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling McDonalds to buy it.
Moving together with McDonalds Stock
Moving against McDonalds Stock
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| 0.74 | CMG | Chipotle Mexican Grill | PairCorr |
| 0.66 | C | Citigroup | PairCorr |
| 0.63 | TSMN | Taiwan Semiconductor | PairCorr |
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| 0.61 | BAC | Bank of America | PairCorr |
| 0.58 | JPM | JPMorgan Chase | PairCorr |
| 0.49 | ITUBN | Ita Unibanco Holding Earnings Call This Week | PairCorr |
| 0.41 | TMN | Toyota Motor | PairCorr |
Related Correlations Analysis
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Be your own money manager
Our tools can tell you how much better you can do entering a position in McDonalds without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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McDonalds Corporate Directors
McDonalds corporate directors refer to members of a McDonalds board of directors. The board of directors generally takes responsibility for the McDonalds' affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of McDonalds' board members must vote for the resolution. The McDonalds board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Richard Lenny | Independent Director | Profile | |
| Margaret Georgiadis | Independent Director | Profile | |
| John Rogers | Independent Director | Profile | |
| Sheila Penrose | Independent Director | Profile |
Already Invested in McDonalds?
The danger of trading McDonalds is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of McDonalds is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than McDonalds. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile McDonalds is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy McDonalds Stock please use our How to Invest in McDonalds guide.Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used 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.
Complementary Tools for McDonalds Stock analysis
When running McDonalds' price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
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