Correlation Between Beyond Meat and Afya
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Afya 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 Beyond Meat and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Afya, you can compare the effects of market volatilities on Beyond Meat and Afya 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 Beyond Meat with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Afya.
Diversification Opportunities for Beyond Meat and Afya
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beyond and Afya is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Beyond Meat 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 Beyond Meat are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Beyond Meat i.e., Beyond Meat and Afya go up and down completely randomly.
Pair Corralation between Beyond Meat and Afya
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Afya. In addition to that, Beyond Meat is 2.01 times more volatile than Afya. It trades about -0.02 of its total potential returns per unit of risk. Afya is currently generating about 0.02 per unit of volatility. If you would invest 1,507 in Afya on September 4, 2024 and sell it today you would earn a total of 152.00 from holding Afya or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Afya
Performance |
| Timeline |
| Beyond Meat |
| Afya |
Beyond Meat and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Afya
The main advantage of trading using opposite Beyond Meat and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Afya vs. Laureate Education | Afya vs. Lincoln Educational Services | Afya vs. Adtalem Global Education | Afya vs. Strategic Education |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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