Correlation Between Alta Equipment and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Alta Equipment 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 Alta Equipment and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta Equipment Group and Beyond Meat, you can compare the effects of market volatilities on Alta Equipment 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 Alta Equipment with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and Beyond Meat.
Diversification Opportunities for Alta Equipment and Beyond Meat
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alta and Beyond is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Alta Equipment 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 Alta Equipment Group 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 Alta Equipment i.e., Alta Equipment and Beyond Meat go up and down completely randomly.
Pair Corralation between Alta Equipment and Beyond Meat
Given the investment horizon of 90 days Alta Equipment Group is expected to generate 1.16 times more return on investment than Beyond Meat. However, Alta Equipment is 1.16 times more volatile than Beyond Meat. It trades about 0.21 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.22 per unit of risk. If you would invest 665.00 in Alta Equipment Group on August 27, 2024 and sell it today you would earn a total of 147.00 from holding Alta Equipment Group or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alta Equipment Group vs. Beyond Meat
Performance |
| Timeline |
| Alta Equipment Group |
| Beyond Meat |
Alta Equipment and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Equipment and Beyond Meat
The main advantage of trading using opposite Alta Equipment and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment 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.| Alta Equipment vs. PROG Holdings | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Mega Matrix Corp | Alta Equipment vs. FTAI Aviation Ltd |
| Beyond Meat vs. Bellring Brands LLC | Beyond Meat vs. Ingredion Incorporated | Beyond Meat vs. Nomad Foods | Beyond Meat vs. Simply Good Foods |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |