Correlation Between Beyond Meat and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Live Ventures 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 Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Live Ventures, you can compare the effects of market volatilities on Beyond Meat and Live Ventures 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 Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Live Ventures.
Diversification Opportunities for Beyond Meat and Live Ventures
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beyond and Live is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures 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 Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Beyond Meat i.e., Beyond Meat and Live Ventures go up and down completely randomly.
Pair Corralation between Beyond Meat and Live Ventures
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Live Ventures. In addition to that, Beyond Meat is 1.08 times more volatile than Live Ventures. It trades about -0.19 of its total potential returns per unit of risk. Live Ventures is currently generating about -0.05 per unit of volatility. If you would invest 1,101 in Live Ventures on September 2, 2024 and sell it today you would lose (67.00) from holding Live Ventures or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Live Ventures
Performance |
| Timeline |
| Beyond Meat |
| Live Ventures |
Beyond Meat and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Live Ventures
The main advantage of trading using opposite Beyond Meat and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |