Correlation Between GX AI and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both GX AI 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 GX AI and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX AI TECH and Beyond Meat, you can compare the effects of market volatilities on GX AI 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 GX AI with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX AI and Beyond Meat.
Diversification Opportunities for GX AI and Beyond Meat
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIQ39 and Beyond is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GX AI TECH and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and GX AI 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 GX AI TECH 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 GX AI i.e., GX AI and Beyond Meat go up and down completely randomly.
Pair Corralation between GX AI and Beyond Meat
Assuming the 90 days trading horizon GX AI TECH is expected to generate 0.27 times more return on investment than Beyond Meat. However, GX AI TECH is 3.65 times less risky than Beyond Meat. It trades about 0.14 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.01 per unit of risk. If you would invest 4,745 in GX AI TECH on September 19, 2024 and sell it today you would earn a total of 3,457 from holding GX AI TECH or generate 72.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 55.62% |
| Values | Daily Returns |
GX AI TECH vs. Beyond Meat
Performance |
| Timeline |
| GX AI TECH |
| Beyond Meat |
GX AI and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GX AI and Beyond Meat
The main advantage of trading using opposite GX AI and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX AI 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.| GX AI vs. GP Investments | GX AI vs. United States Steel | GX AI vs. Paycom Software | GX AI vs. MAHLE Metal Leve |
| Beyond Meat vs. MAHLE Metal Leve | Beyond Meat vs. Mitsubishi UFJ Financial | Beyond Meat vs. Deutsche Bank Aktiengesellschaft | Beyond Meat vs. Metalrgica Riosulense SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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