Correlation Between Beyond Meat and Occidental
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By analyzing existing cross correlation between Beyond Meat and Occidental Petroleum 43, you can compare the effects of market volatilities on Beyond Meat and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Occidental.
Diversification Opportunities for Beyond Meat and Occidental
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beyond and Occidental is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Occidental Petroleum 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Beyond Meat i.e., Beyond Meat and Occidental go up and down completely randomly.
Pair Corralation between Beyond Meat and Occidental
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Occidental. But the stock apears to be less risky and, when comparing its historical volatility, Beyond Meat is 16.72 times less risky than Occidental. The stock trades about -0.02 of its potential returns per unit of risk. The Occidental Petroleum 43 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,275 in Occidental Petroleum 43 on September 3, 2024 and sell it today you would lose (32.00) from holding Occidental Petroleum 43 or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.61% |
| Values | Daily Returns |
Beyond Meat vs. Occidental Petroleum 43
Performance |
| Timeline |
| Beyond Meat |
| Occidental Petroleum |
Beyond Meat and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Occidental
The main advantage of trading using opposite Beyond Meat and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| Occidental vs. Lindblad Expeditions Holdings | Occidental vs. Verra Mobility Corp | Occidental vs. Artisan Partners Asset | Occidental vs. Afya |
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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