Correlation Between CSN Minerao and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both CSN Minerao and Beyond Meat 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 CSN Minerao and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSN Minerao SA and Beyond Meat, you can compare the effects of market volatilities on CSN Minerao and Beyond Meat 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 CSN Minerao with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSN Minerao and Beyond Meat.
Diversification Opportunities for CSN Minerao and Beyond Meat
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSN and Beyond is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CSN Minerao SA and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and CSN Minerao 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 CSN Minerao SA are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of CSN Minerao i.e., CSN Minerao and Beyond Meat go up and down completely randomly.
Pair Corralation between CSN Minerao and Beyond Meat
Assuming the 90 days trading horizon CSN Minerao SA is expected to generate 0.5 times more return on investment than Beyond Meat. However, CSN Minerao SA is 2.0 times less risky than Beyond Meat. It trades about 0.18 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.28 per unit of risk. If you would invest 523.00 in CSN Minerao SA on September 14, 2024 and sell it today you would earn a total of 37.00 from holding CSN Minerao SA or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSN Minerao SA vs. Beyond Meat
Performance |
| Timeline |
| CSN Minerao SA |
| Beyond Meat |
CSN Minerao and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSN Minerao and Beyond Meat
The main advantage of trading using opposite CSN Minerao and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSN Minerao position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| CSN Minerao vs. Taiwan Semiconductor Manufacturing | CSN Minerao vs. Apple Inc | CSN Minerao vs. Alibaba Group Holding | CSN Minerao vs. Microsoft |
| Beyond Meat vs. Intelbras SA | Beyond Meat vs. CSN Minerao SA | Beyond Meat vs. Boa Safra Sementes | Beyond Meat vs. Aeris Indstria e |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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