Correlation Between Beston Global and My Foodie
Can any of the company-specific risk be diversified away by investing in both Beston Global and My Foodie 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 Beston Global and My Foodie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and My Foodie Box, you can compare the effects of market volatilities on Beston Global and My Foodie 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 Beston Global with a short position of My Foodie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and My Foodie.
Diversification Opportunities for Beston Global and My Foodie
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Beston and MBX is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and My Foodie Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Foodie Box and Beston Global 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 Beston Global Food are associated (or correlated) with My Foodie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Foodie Box has no effect on the direction of Beston Global i.e., Beston Global and My Foodie go up and down completely randomly.
Pair Corralation between Beston Global and My Foodie
Assuming the 90 days trading horizon Beston Global Food is expected to generate 2.2 times more return on investment than My Foodie. However, Beston Global is 2.2 times more volatile than My Foodie Box. It trades about 0.01 of its potential returns per unit of risk. My Foodie Box is currently generating about -0.06 per unit of risk. If you would invest 2.30 in Beston Global Food on September 3, 2024 and sell it today you would lose (2.00) from holding Beston Global Food or give up 86.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. My Foodie Box
Performance |
| Timeline |
| Beston Global Food |
| My Foodie Box |
Beston Global and My Foodie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and My Foodie
The main advantage of trading using opposite Beston Global and My Foodie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global position performs unexpectedly, My Foodie 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 My Foodie will offset losses from the drop in My Foodie's long position.| Beston Global vs. Pinnacle Investment Management | Beston Global vs. oOhMedia | Beston Global vs. Seven West Media | Beston Global vs. Alternative Investment Trust |
| My Foodie vs. Cooper Metals | My Foodie vs. OD6 Metals | My Foodie vs. SportsHero | My Foodie vs. Champion Iron |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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