Correlation Between Continental Beverage and Alpha Star
Can any of the company-specific risk be diversified away by investing in both Continental Beverage and Alpha Star 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 Continental Beverage and Alpha Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Continental Beverage Brands and Alpha Star Acquisition, you can compare the effects of market volatilities on Continental Beverage and Alpha Star 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 Continental Beverage with a short position of Alpha Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Beverage and Alpha Star.
Diversification Opportunities for Continental Beverage and Alpha Star
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Continental and Alpha is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Continental Beverage Brands and Alpha Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Star Acquisition and Continental Beverage 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 Continental Beverage Brands are associated (or correlated) with Alpha Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Star Acquisition has no effect on the direction of Continental Beverage i.e., Continental Beverage and Alpha Star go up and down completely randomly.
Pair Corralation between Continental Beverage and Alpha Star
Given the investment horizon of 90 days Continental Beverage Brands is expected to generate 130.34 times more return on investment than Alpha Star. However, Continental Beverage is 130.34 times more volatile than Alpha Star Acquisition. It trades about 0.16 of its potential returns per unit of risk. Alpha Star Acquisition is currently generating about 0.03 per unit of risk. If you would invest 12.00 in Continental Beverage Brands on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Continental Beverage Brands or generate 525.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.71% |
| Values | Daily Returns |
Continental Beverage Brands vs. Alpha Star Acquisition
Performance |
| Timeline |
| Continental Beverage |
| Alpha Star Acquisition |
Continental Beverage and Alpha Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Continental Beverage and Alpha Star
The main advantage of trading using opposite Continental Beverage and Alpha Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental Beverage position performs unexpectedly, Alpha Star 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 Alpha Star will offset losses from the drop in Alpha Star's long position.| Continental Beverage vs. American Leisure Holdings | Continental Beverage vs. Supurva Healthcare Group | Continental Beverage vs. China Health Management | Continental Beverage vs. Embrace Change Acquisition |
| Alpha Star vs. Visa Class A | Alpha Star vs. Diamond Hill Investment | Alpha Star vs. Distoken Acquisition | Alpha Star vs. Associated Capital Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |