Correlation Between Beyond Meat and Healthcare Realty
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Healthcare Realty 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 Beyond Meat and Healthcare Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Healthcare Realty Trust, you can compare the effects of market volatilities on Beyond Meat and Healthcare Realty 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 Beyond Meat with a short position of Healthcare Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Healthcare Realty.
Diversification Opportunities for Beyond Meat and Healthcare Realty
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beyond and Healthcare is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Healthcare Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Realty Trust and Beyond Meat 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 Beyond Meat are associated (or correlated) with Healthcare Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Realty Trust has no effect on the direction of Beyond Meat i.e., Beyond Meat and Healthcare Realty go up and down completely randomly.
Pair Corralation between Beyond Meat and Healthcare Realty
Assuming the 90 days trading horizon Beyond Meat is expected to generate 3.8 times more return on investment than Healthcare Realty. However, Beyond Meat is 3.8 times more volatile than Healthcare Realty Trust. It trades about 0.03 of its potential returns per unit of risk. Healthcare Realty Trust is currently generating about -0.48 per unit of risk. If you would invest 118.00 in Beyond Meat on October 25, 2024 and sell it today you would earn a total of 1.00 from holding Beyond Meat or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 57.89% |
| Values | Daily Returns |
Beyond Meat vs. Healthcare Realty Trust
Performance |
| Timeline |
| Beyond Meat |
| Healthcare Realty Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Beyond Meat and Healthcare Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Healthcare Realty
The main advantage of trading using opposite Beyond Meat and Healthcare Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Healthcare Realty 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 Healthcare Realty will offset losses from the drop in Healthcare Realty's long position.| Beyond Meat vs. Fidelity National Information | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Marfrig Global Foods | Beyond Meat vs. Take Two Interactive Software |
| Healthcare Realty vs. Electronic Arts | Healthcare Realty vs. Beyond Meat | Healthcare Realty vs. Mangels Industrial SA | Healthcare Realty vs. MAHLE Metal Leve |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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