Correlation Between Boston Beer and BP Prudhoe
Can any of the company-specific risk be diversified away by investing in both Boston Beer and BP Prudhoe 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 BP Prudhoe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and BP Prudhoe Bay, you can compare the effects of market volatilities on Boston Beer and BP Prudhoe 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 BP Prudhoe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and BP Prudhoe.
Diversification Opportunities for Boston Beer and BP Prudhoe
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and BMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and BP Prudhoe Bay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP Prudhoe Bay 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 The Boston Beer are associated (or correlated) with BP Prudhoe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP Prudhoe Bay has no effect on the direction of Boston Beer i.e., Boston Beer and BP Prudhoe go up and down completely randomly.
Pair Corralation between Boston Beer and BP Prudhoe
If you would invest 27,920 in The Boston Beer on August 29, 2024 and sell it today you would earn a total of 2,040 from holding The Boston Beer or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Boston Beer vs. BP Prudhoe Bay
Performance |
| Timeline |
| Boston Beer |
| BP Prudhoe Bay |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Beer and BP Prudhoe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and BP Prudhoe
The main advantage of trading using opposite Boston Beer and BP Prudhoe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, BP Prudhoe 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 BP Prudhoe will offset losses from the drop in BP Prudhoe's long position.| Boston Beer vs. Haverty Furniture Companies | Boston Beer vs. AUST AGRICULTURAL | Boston Beer vs. North American Construction | Boston Beer vs. Daito Trust Construction |
| BP Prudhoe vs. REVO INSURANCE SPA | BP Prudhoe vs. Dalata Hotel Group | BP Prudhoe vs. Insurance Australia Group | BP Prudhoe vs. HANOVER INSURANCE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |