Correlation Between Mosaic and Premium Catering

Can any of the company-specific risk be diversified away by investing in both Mosaic and Premium Catering 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 Mosaic and Premium Catering into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Mosaic and Premium Catering Limited, you can compare the effects of market volatilities on Mosaic and Premium Catering 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 Mosaic with a short position of Premium Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mosaic and Premium Catering.

Diversification Opportunities for Mosaic and Premium Catering

-0.34

Correlation Coefficient

Mosaic  Premium Catering

Very good diversification

The 3 months correlation between Mosaic and Premium is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Mosaic and Premium Catering Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premium Catering and Mosaic 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 The Mosaic are associated (or correlated) with Premium Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premium Catering has no effect on the direction of Mosaic i.e., Mosaic and Premium Catering go up and down completely randomly.

Pair Corralation between Mosaic and Premium Catering

Considering the 90-day investment horizon The Mosaic is expected to under-perform the Premium Catering. But the stock apears to be less risky and, when comparing its historical volatility, The Mosaic is 2.49 times less risky than Premium Catering. The stock trades about 0.0 of its potential returns per unit of risk. The Premium Catering Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  607.00  in Premium Catering Limited on June 29, 2025 and sell it today you would earn a total of  292.00  from holding Premium Catering Limited or generate 48.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

The Mosaic  vs.  Premium Catering Limited

Mosaic

Risk-Adjusted Performance

Weakest

Over the last 90 days The Mosaic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mosaic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Premium Catering

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Premium Catering Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental indicators, Premium Catering exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mosaic and Premium Catering

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

The idea behind The Mosaic and Premium Catering 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.