Correlation Between Aryzta AG and Steakholder Foods
Can any of the company-specific risk be diversified away by investing in both Aryzta AG and Steakholder Foods 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 Aryzta AG and Steakholder Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aryzta AG PK and Steakholder Foods, you can compare the effects of market volatilities on Aryzta AG and Steakholder Foods 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 Aryzta AG with a short position of Steakholder Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aryzta AG and Steakholder Foods.
Diversification Opportunities for Aryzta AG and Steakholder Foods
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aryzta and Steakholder is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aryzta AG PK and Steakholder Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steakholder Foods and Aryzta AG 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 Aryzta AG PK are associated (or correlated) with Steakholder Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steakholder Foods has no effect on the direction of Aryzta AG i.e., Aryzta AG and Steakholder Foods go up and down completely randomly.
Pair Corralation between Aryzta AG and Steakholder Foods
Assuming the 90 days horizon Aryzta AG PK is expected to generate 0.98 times more return on investment than Steakholder Foods. However, Aryzta AG PK is 1.02 times less risky than Steakholder Foods. It trades about 0.19 of its potential returns per unit of risk. Steakholder Foods is currently generating about -0.07 per unit of risk. If you would invest 86.00 in Aryzta AG PK on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Aryzta AG PK or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aryzta AG PK vs. Steakholder Foods
Performance |
| Timeline |
| Aryzta AG PK |
| Steakholder Foods |
Aryzta AG and Steakholder Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aryzta AG and Steakholder Foods
The main advantage of trading using opposite Aryzta AG and Steakholder Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aryzta AG position performs unexpectedly, Steakholder Foods 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 Steakholder Foods will offset losses from the drop in Steakholder Foods' long position.| Aryzta AG vs. Artisan Consumer Goods | Aryzta AG vs. Altavoz Entertainment | Aryzta AG vs. Avi Ltd ADR | Aryzta AG vs. The a2 Milk |
| Steakholder Foods vs. Farmmi Inc | Steakholder Foods vs. Herbalife Nutrition | Steakholder Foods vs. Beyond Meat | Steakholder Foods vs. Bit Origin |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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