Correlation Between Beyond Meat and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Aegean Airlines 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 Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Aegean Airlines SA, you can compare the effects of market volatilities on Beyond Meat and Aegean Airlines 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 Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Aegean Airlines.
Diversification Opportunities for Beyond Meat and Aegean Airlines
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beyond and Aegean is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA 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 Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Beyond Meat i.e., Beyond Meat and Aegean Airlines go up and down completely randomly.
Pair Corralation between Beyond Meat and Aegean Airlines
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Aegean Airlines. In addition to that, Beyond Meat is 2.09 times more volatile than Aegean Airlines SA. It trades about -0.02 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.07 per unit of volatility. If you would invest 532.00 in Aegean Airlines SA on September 4, 2024 and sell it today you would earn a total of 553.00 from holding Aegean Airlines SA or generate 103.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Aegean Airlines SA
Performance |
| Timeline |
| Beyond Meat |
| Aegean Airlines SA |
Beyond Meat and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Aegean Airlines
The main advantage of trading using opposite Beyond Meat and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Aegean Airlines vs. Apple Inc | Aegean Airlines vs. Microsoft | Aegean Airlines vs. Amazon Inc | Aegean Airlines vs. Alphabet Inc Class C |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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