Correlation Between Beyond Meat and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Comstock Holding 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 Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Comstock Holding Companies, you can compare the effects of market volatilities on Beyond Meat and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Comstock Holding.
Diversification Opportunities for Beyond Meat and Comstock Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beyond and Comstock is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Beyond Meat i.e., Beyond Meat and Comstock Holding go up and down completely randomly.
Pair Corralation between Beyond Meat and Comstock Holding
Given the investment horizon of 90 days Beyond Meat is expected to generate 1.03 times more return on investment than Comstock Holding. However, Beyond Meat is 1.03 times more volatile than Comstock Holding Companies. It trades about -0.19 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.34 per unit of risk. If you would invest 604.00 in Beyond Meat on September 3, 2024 and sell it today you would lose (106.00) from holding Beyond Meat or give up 17.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Comstock Holding Companies
Performance |
| Timeline |
| Beyond Meat |
| Comstock Holding Com |
Beyond Meat and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Comstock Holding
The main advantage of trading using opposite Beyond Meat and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. Mitsui Fudosan Co | Comstock Holding vs. New World Development |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |