Correlation Between CITY OFFICE and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and Beyond Meat 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 CITY OFFICE and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and Beyond Meat, you can compare the effects of market volatilities on CITY OFFICE and Beyond Meat 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 CITY OFFICE with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and Beyond Meat.
Diversification Opportunities for CITY OFFICE and Beyond Meat
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CITY and Beyond is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and CITY OFFICE 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 CITY OFFICE REIT are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and Beyond Meat go up and down completely randomly.
Pair Corralation between CITY OFFICE and Beyond Meat
Assuming the 90 days horizon CITY OFFICE REIT is expected to generate 0.9 times more return on investment than Beyond Meat. However, CITY OFFICE REIT is 1.11 times less risky than Beyond Meat. It trades about 0.24 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.17 per unit of risk. If you would invest 442.00 in CITY OFFICE REIT on September 2, 2024 and sell it today you would earn a total of 83.00 from holding CITY OFFICE REIT or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. Beyond Meat
Performance |
| Timeline |
| CITY OFFICE REIT |
| Beyond Meat |
CITY OFFICE and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and Beyond Meat
The main advantage of trading using opposite CITY OFFICE and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| CITY OFFICE vs. GRUPO CARSO A1 | CITY OFFICE vs. PLAYTECH | CITY OFFICE vs. PLAY2CHILL SA ZY | CITY OFFICE vs. Grupo Carso SAB |
| Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |