Correlation Between Beeks Trading and Givaudan
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Givaudan 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 Beeks Trading and Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Givaudan SA, you can compare the effects of market volatilities on Beeks Trading and Givaudan 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 Beeks Trading with a short position of Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Givaudan.
Diversification Opportunities for Beeks Trading and Givaudan
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beeks and Givaudan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA and Beeks Trading 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 Beeks Trading are associated (or correlated) with Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Beeks Trading i.e., Beeks Trading and Givaudan go up and down completely randomly.
Pair Corralation between Beeks Trading and Givaudan
Assuming the 90 days trading horizon Beeks Trading is expected to generate 2.67 times more return on investment than Givaudan. However, Beeks Trading is 2.67 times more volatile than Givaudan SA. It trades about 0.17 of its potential returns per unit of risk. Givaudan SA is currently generating about 0.02 per unit of risk. If you would invest 25,200 in Beeks Trading on September 24, 2024 and sell it today you would earn a total of 2,300 from holding Beeks Trading or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. Givaudan SA
Performance |
| Timeline |
| Beeks Trading |
| Givaudan SA |
Beeks Trading and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Givaudan
The main advantage of trading using opposite Beeks Trading and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Beeks Trading vs. Catalyst Media Group | Beeks Trading vs. CATLIN GROUP | Beeks Trading vs. Tamburi Investment Partners | Beeks Trading vs. Magnora ASA |
| Givaudan vs. Lowland Investment Co | Givaudan vs. Kinnevik Investment AB | Givaudan vs. Beeks Trading | Givaudan vs. MyHealthChecked Plc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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