Correlation Between Eat Beyond and Amaero International
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Amaero International 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 Eat Beyond and Amaero International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Beyond Global and Amaero International, you can compare the effects of market volatilities on Eat Beyond and Amaero International 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 Eat Beyond with a short position of Amaero International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Amaero International.
Diversification Opportunities for Eat Beyond and Amaero International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Amaero is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Amaero International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaero International and Eat Beyond 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 Eat Beyond Global are associated (or correlated) with Amaero International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaero International has no effect on the direction of Eat Beyond i.e., Eat Beyond and Amaero International go up and down completely randomly.
Pair Corralation between Eat Beyond and Amaero International
If you would invest 4.10 in Eat Beyond Global on August 26, 2024 and sell it today you would earn a total of 2.30 from holding Eat Beyond Global or generate 56.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. Amaero International
Performance |
| Timeline |
| Eat Beyond Global |
| Amaero International |
Eat Beyond and Amaero International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Amaero International
The main advantage of trading using opposite Eat Beyond and Amaero International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Amaero International 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 Amaero International will offset losses from the drop in Amaero International's long position.| Eat Beyond vs. Elysee Development Corp | Eat Beyond vs. Azimut Holding SpA | Eat Beyond vs. Ameritrans Capital Corp | Eat Beyond vs. Aimia Inc |
| Amaero International vs. Aumann AG | Amaero International vs. Arista Power | Amaero International vs. Atlas Copco AB | Amaero International vs. American Commerce Solutions |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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