Correlation Between BOSTON BEER and ABOUT YOU
Can any of the company-specific risk be diversified away by investing in both BOSTON BEER and ABOUT YOU 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 BOSTON BEER and ABOUT YOU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOSTON BEER A and ABOUT YOU Holding, you can compare the effects of market volatilities on BOSTON BEER and ABOUT YOU 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 BOSTON BEER with a short position of ABOUT YOU. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOSTON BEER and ABOUT YOU.
Diversification Opportunities for BOSTON BEER and ABOUT YOU
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BOSTON and ABOUT is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BOSTON BEER A and ABOUT YOU Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOUT YOU Holding and BOSTON BEER 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 BOSTON BEER A are associated (or correlated) with ABOUT YOU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOUT YOU Holding has no effect on the direction of BOSTON BEER i.e., BOSTON BEER and ABOUT YOU go up and down completely randomly.
Pair Corralation between BOSTON BEER and ABOUT YOU
Assuming the 90 days trading horizon BOSTON BEER is expected to generate 1.69 times less return on investment than ABOUT YOU. But when comparing it to its historical volatility, BOSTON BEER A is 1.53 times less risky than ABOUT YOU. It trades about 0.2 of its potential returns per unit of risk. ABOUT YOU Holding is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 268.00 in ABOUT YOU Holding on September 12, 2024 and sell it today you would earn a total of 108.00 from holding ABOUT YOU Holding or generate 40.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
BOSTON BEER A vs. ABOUT YOU Holding
Performance |
| Timeline |
| BOSTON BEER A |
| ABOUT YOU Holding |
BOSTON BEER and ABOUT YOU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOSTON BEER and ABOUT YOU
The main advantage of trading using opposite BOSTON BEER and ABOUT YOU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOSTON BEER position performs unexpectedly, ABOUT YOU 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 ABOUT YOU will offset losses from the drop in ABOUT YOU's long position.| BOSTON BEER vs. Apple Inc | BOSTON BEER vs. Apple Inc | BOSTON BEER vs. Apple Inc | BOSTON BEER vs. Apple Inc |
| ABOUT YOU vs. Singapore Telecommunications Limited | ABOUT YOU vs. Verizon Communications | ABOUT YOU vs. Boiron SA | ABOUT YOU vs. CECO ENVIRONMENTAL |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |