Correlation Between Retail Food and Advantex Marketing

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

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

Diversification Opportunities for Retail Food and Advantex Marketing

1.0

Correlation Coefficient

Retail Food  Advantex Marketing

No risk reduction

The 3 months correlation between Retail and Advantex is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Retail Food Group and Advantex Marketing Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantex Marketing and Retail 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 Retail Food Group are associated (or correlated) with Advantex Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantex Marketing has no effect on the direction of Retail Food i.e., Retail Food and Advantex Marketing go up and down completely randomly.

Pair Corralation between Retail Food and Advantex Marketing

Assuming the 90 days horizon Retail Food is expected to generate 2.22 times less return on investment than Advantex Marketing. But when comparing it to its historical volatility, Retail Food Group is 2.56 times less risky than Advantex Marketing. It trades about 0.04 of its potential returns per unit of risk. Advantex Marketing International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.15  in Advantex Marketing International on July 16, 2025 and sell it today you would earn a total of  0.13  from holding Advantex Marketing International or generate 86.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	58.48%
Values	Daily Returns

Retail Food Group  vs.  Advantex Marketing Internation

Retail Food Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Retail Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Retail Food is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Advantex Marketing

Risk-Adjusted Performance

Weakest

Over the last 90 days Advantex Marketing International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Advantex Marketing is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Retail Food and Advantex Marketing

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

The idea behind Retail Food Group and Advantex Marketing International 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.