Correlation Between Eat Beyond and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Antilles Gold 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 Antilles Gold 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 Antilles Gold Limited, you can compare the effects of market volatilities on Eat Beyond and Antilles Gold 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 Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Antilles Gold.
Diversification Opportunities for Eat Beyond and Antilles Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eat and Antilles is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited 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 Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Eat Beyond i.e., Eat Beyond and Antilles Gold go up and down completely randomly.
Pair Corralation between Eat Beyond and Antilles Gold
Assuming the 90 days horizon Eat Beyond Global is expected to generate 2.77 times more return on investment than Antilles Gold. However, Eat Beyond is 2.77 times more volatile than Antilles Gold Limited. It trades about 0.18 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.32 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. Antilles Gold Limited
Performance |
| Timeline |
| Eat Beyond Global |
| Antilles Gold Limited |
Eat Beyond and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Antilles Gold
The main advantage of trading using opposite Eat Beyond and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold'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 |
| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Liberty Gold Corp | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Orezone Gold Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |