Correlation Between Eat Beyond and BankFirst Capital
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and BankFirst Capital 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 BankFirst Capital 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 BankFirst Capital, you can compare the effects of market volatilities on Eat Beyond and BankFirst Capital 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 BankFirst Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and BankFirst Capital.
Diversification Opportunities for Eat Beyond and BankFirst Capital
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eat and BankFirst is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and BankFirst Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankFirst Capital 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 BankFirst Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankFirst Capital has no effect on the direction of Eat Beyond i.e., Eat Beyond and BankFirst Capital go up and down completely randomly.
Pair Corralation between Eat Beyond and BankFirst Capital
Assuming the 90 days horizon Eat Beyond Global is expected to generate 28.6 times more return on investment than BankFirst Capital. However, Eat Beyond is 28.6 times more volatile than BankFirst Capital. It trades about 0.22 of its potential returns per unit of risk. BankFirst Capital is currently generating about 0.2 per unit of risk. If you would invest 4.10 in Eat Beyond Global on August 28, 2024 and sell it today you would earn a total of 5.30 from holding Eat Beyond Global or generate 129.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eat Beyond Global vs. BankFirst Capital
Performance |
| Timeline |
| Eat Beyond Global |
| BankFirst Capital |
Eat Beyond and BankFirst Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and BankFirst Capital
The main advantage of trading using opposite Eat Beyond and BankFirst Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, BankFirst Capital 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 BankFirst Capital will offset losses from the drop in BankFirst Capital'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 |
| BankFirst Capital vs. Harbor Bankshares | BankFirst Capital vs. Citizens Bancshares Corp | BankFirst Capital vs. Security Federal | BankFirst Capital vs. MF Bancorp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |