Correlation Between Maple Leaf and First Resources

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

Diversification Opportunities for Maple Leaf and First Resources

-0.85

Correlation Coefficient

Maple Leaf  First Resources

Pay attention - limited upside

The 3 months correlation between Maple and First is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and First Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Resources 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 First Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Resources has no effect on the direction of Maple Leaf i.e., Maple Leaf and First Resources go up and down completely randomly.

Pair Corralation between Maple Leaf and First Resources

Assuming the 90 days horizon Maple Leaf Foods is expected to under-perform the First Resources. In addition to that, Maple Leaf is 1.23 times more volatile than First Resources Limited. It trades about -0.09 of its total potential returns per unit of risk. First Resources Limited is currently generating about 0.13 per unit of volatility. If you would invest  120.00  in First Resources Limited on September 17, 2025 and sell it today you would earn a total of  37.00  from holding First Resources Limited or generate 30.83% return on investment over 90 days.

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

Maple Leaf Foods  vs.  First Resources Limited

Maple Leaf Foods

Risk-Adjusted Performance

Weakest

Over the last 90 days Maple Leaf Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

First Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Resources Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, First Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maple Leaf and First Resources

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

The idea behind Maple Leaf Foods and First Resources Limited 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 Commodity Directory module to find actively traded commodities issued by global exchanges.