Correlation Between SWISS WATER and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both SWISS WATER 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 SWISS WATER and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and Beyond Meat, you can compare the effects of market volatilities on SWISS WATER 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 SWISS WATER with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and Beyond Meat.
Diversification Opportunities for SWISS WATER and Beyond Meat
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SWISS and Beyond is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and SWISS WATER 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 SWISS WATER DECAFFCOFFEE 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 SWISS WATER i.e., SWISS WATER and Beyond Meat go up and down completely randomly.
Pair Corralation between SWISS WATER and Beyond Meat
Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 0.61 times more return on investment than Beyond Meat. However, SWISS WATER DECAFFCOFFEE is 1.63 times less risky than Beyond Meat. It trades about 0.08 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.27 per unit of risk. If you would invest 262.00 in SWISS WATER DECAFFCOFFEE on August 28, 2024 and sell it today you would earn a total of 10.00 from holding SWISS WATER DECAFFCOFFEE or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. Beyond Meat
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| Beyond Meat |
SWISS WATER and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and Beyond Meat
The main advantage of trading using opposite SWISS WATER and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER 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.| SWISS WATER vs. RYU Apparel | SWISS WATER vs. New Residential Investment | SWISS WATER vs. American Eagle Outfitters | SWISS WATER vs. PennyMac Mortgage Investment |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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