Correlation Between Beyond Meat and Hurco Companies
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Hurco Companies 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 Hurco Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Hurco Companies, you can compare the effects of market volatilities on Beyond Meat and Hurco Companies 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 Hurco Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Hurco Companies.
Diversification Opportunities for Beyond Meat and Hurco Companies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beyond and Hurco is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies 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 Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of Beyond Meat i.e., Beyond Meat and Hurco Companies go up and down completely randomly.
Pair Corralation between Beyond Meat and Hurco Companies
Given the investment horizon of 90 days Beyond Meat is expected to generate 0.95 times more return on investment than Hurco Companies. However, Beyond Meat is 1.06 times less risky than Hurco Companies. It trades about -0.16 of its potential returns per unit of risk. Hurco Companies is currently generating about -0.19 per unit of risk. If you would invest 413.00 in Beyond Meat on November 28, 2024 and sell it today you would lose (53.50) from holding Beyond Meat or give up 12.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Beyond Meat vs. Hurco Companies
Performance |
| Timeline |
| Beyond Meat |
| Hurco Companies |
Beyond Meat and Hurco Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Hurco Companies
The main advantage of trading using opposite Beyond Meat and Hurco Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Hurco Companies 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 Hurco Companies will offset losses from the drop in Hurco Companies' long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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