Correlation Between Beyond Meat and Valens
Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Valens 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 Valens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Valens, you can compare the effects of market volatilities on Beyond Meat and Valens 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 Valens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Valens.
Diversification Opportunities for Beyond Meat and Valens
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beyond and Valens is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Valens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valens 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 Valens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valens has no effect on the direction of Beyond Meat i.e., Beyond Meat and Valens go up and down completely randomly.
Pair Corralation between Beyond Meat and Valens
Given the investment horizon of 90 days Beyond Meat is expected to generate 0.96 times more return on investment than Valens. However, Beyond Meat is 1.04 times less risky than Valens. It trades about -0.04 of its potential returns per unit of risk. Valens is currently generating about -0.05 per unit of risk. If you would invest 607.00 in Beyond Meat on August 28, 2024 and sell it today you would lose (82.00) from holding Beyond Meat or give up 13.51% 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. Valens
Performance |
| Timeline |
| Beyond Meat |
| Valens |
Beyond Meat and Valens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Valens
The main advantage of trading using opposite Beyond Meat and Valens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Valens 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 Valens will offset losses from the drop in Valens' long position.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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