Correlation Between Beyond Meat and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and MAHLE Metal 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 MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and MAHLE Metal Leve, you can compare the effects of market volatilities on Beyond Meat and MAHLE Metal 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 MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and MAHLE Metal.
Diversification Opportunities for Beyond Meat and MAHLE Metal
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beyond and MAHLE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve 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 MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of Beyond Meat i.e., Beyond Meat and MAHLE Metal go up and down completely randomly.
Pair Corralation between Beyond Meat and MAHLE Metal
Assuming the 90 days trading horizon Beyond Meat is expected to under-perform the MAHLE Metal. In addition to that, Beyond Meat is 2.22 times more volatile than MAHLE Metal Leve. It trades about -0.24 of its total potential returns per unit of risk. MAHLE Metal Leve is currently generating about -0.1 per unit of volatility. If you would invest 2,817 in MAHLE Metal Leve on September 13, 2024 and sell it today you would lose (112.00) from holding MAHLE Metal Leve or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. MAHLE Metal Leve
Performance |
| Timeline |
| Beyond Meat |
| MAHLE Metal Leve |
Beyond Meat and MAHLE Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and MAHLE Metal
The main advantage of trading using opposite Beyond Meat and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.| Beyond Meat vs. Intelbras SA | Beyond Meat vs. CSN Minerao SA | Beyond Meat vs. Boa Safra Sementes | Beyond Meat vs. Aeris Indstria e |
| MAHLE Metal vs. Tupy SA | MAHLE Metal vs. Engie Brasil Energia | MAHLE Metal vs. Grendene SA | MAHLE Metal vs. M Dias Branco |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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