Correlation Between Aehr Test and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Aehr Test 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 Aehr Test and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Beyond Meat, you can compare the effects of market volatilities on Aehr Test 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 Aehr Test with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Beyond Meat.
Diversification Opportunities for Aehr Test and Beyond Meat
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aehr and Beyond is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Aehr Test 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 Aehr Test Systems 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 Aehr Test i.e., Aehr Test and Beyond Meat go up and down completely randomly.
Pair Corralation between Aehr Test and Beyond Meat
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the Beyond Meat. In addition to that, Aehr Test is 1.11 times more volatile than Beyond Meat. It trades about -0.03 of its total potential returns per unit of risk. Beyond Meat is currently generating about -0.03 per unit of volatility. If you would invest 910.00 in Beyond Meat on September 2, 2024 and sell it today you would lose (412.00) from holding Beyond Meat or give up 45.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Beyond Meat
Performance |
| Timeline |
| Aehr Test Systems |
| Beyond Meat |
Aehr Test and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Beyond Meat
The main advantage of trading using opposite Aehr Test and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test 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.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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