Correlation Between MTY Food and Broadcom

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

By analyzing existing cross correlation between MTY Food Group and Broadcom, you can compare the effects of market volatilities on MTY Food and Broadcom 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 MTY Food with a short position of Broadcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Broadcom.

Diversification Opportunities for MTY Food and Broadcom

-0.53

Correlation Coefficient

MTY Food  Broadcom

Excellent diversification

The 3 months correlation between MTY and Broadcom is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Broadcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadcom and MTY Food 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 MTY Food Group are associated (or correlated) with Broadcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadcom has no effect on the direction of MTY Food i.e., MTY Food and Broadcom go up and down completely randomly.

Pair Corralation between MTY Food and Broadcom

Assuming the 90 days trading horizon MTY Food Group is expected to under-perform the Broadcom. In addition to that, MTY Food is 1.19 times more volatile than Broadcom. It trades about -0.15 of its total potential returns per unit of risk. Broadcom is currently generating about 0.08 per unit of volatility. If you would invest  7,939  in Broadcom on July 23, 2025 and sell it today you would earn a total of  234.00  from holding Broadcom or generate 2.95% return on investment over 90 days.

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

MTY Food Group  vs.  Broadcom

MTY Food Group

Risk-Adjusted Performance

Weakest

Over the last 90 days MTY Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Broadcom

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Broadcom are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Broadcom exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MTY Food and Broadcom

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

The idea behind MTY Food Group and Broadcom 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.