Correlation Between Beyond Meat and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Sligro Food Group, you can compare the effects of market volatilities on Beyond Meat and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Sligro Food.
Diversification Opportunities for Beyond Meat and Sligro Food
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beyond and Sligro is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Beyond Meat i.e., Beyond Meat and Sligro Food go up and down completely randomly.
Pair Corralation between Beyond Meat and Sligro Food
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Sligro Food. In addition to that, Beyond Meat is 2.81 times more volatile than Sligro Food Group. It trades about -0.03 of its total potential returns per unit of risk. Sligro Food Group is currently generating about -0.07 per unit of volatility. If you would invest 1,705 in Sligro Food Group on September 2, 2024 and sell it today you would lose (505.00) from holding Sligro Food Group or give up 29.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Beyond Meat vs. Sligro Food Group
Performance |
| Timeline |
| Beyond Meat |
| Sligro Food Group |
Beyond Meat and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Sligro Food
The main advantage of trading using opposite Beyond Meat and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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