Correlation Between Maple Leaf and Else Nutrition

Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Else Nutrition 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 Else Nutrition 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 Else Nutrition Holdings, you can compare the effects of market volatilities on Maple Leaf and Else Nutrition 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 Else Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Else Nutrition.

Diversification Opportunities for Maple Leaf and Else Nutrition

0.59

Correlation Coefficient

Maple Leaf  Else Nutrition

Very weak diversification

The 3 months correlation between Maple and Else is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings 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 Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Maple Leaf i.e., Maple Leaf and Else Nutrition go up and down completely randomly.

Pair Corralation between Maple Leaf and Else Nutrition

Assuming the 90 days horizon Maple Leaf is expected to generate 10.39 times less return on investment than Else Nutrition. But when comparing it to its historical volatility, Maple Leaf Foods is 19.88 times less risky than Else Nutrition. It trades about 0.28 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Else Nutrition Holdings on May 18, 2025 and sell it today you would earn a total of  2.20  from holding Else Nutrition Holdings or generate 220.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Maple Leaf Foods  vs.  Else Nutrition Holdings

Maple Leaf Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Foods are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Maple Leaf reported solid returns over the last few months and may actually be approaching a breakup point.

Else Nutrition Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Else Nutrition Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Else Nutrition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maple Leaf and Else Nutrition

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

The idea behind Maple Leaf Foods and Else Nutrition Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.