Correlation Between Eat Beyond and BrainsWay
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and BrainsWay 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 BrainsWay 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 BrainsWay, you can compare the effects of market volatilities on Eat Beyond and BrainsWay 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 BrainsWay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and BrainsWay.
Diversification Opportunities for Eat Beyond and BrainsWay
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and BrainsWay is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and BrainsWay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainsWay 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 BrainsWay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainsWay has no effect on the direction of Eat Beyond i.e., Eat Beyond and BrainsWay go up and down completely randomly.
Pair Corralation between Eat Beyond and BrainsWay
If you would invest 4.00 in Eat Beyond Global on August 30, 2024 and sell it today you would earn a total of 3.02 from holding Eat Beyond Global or generate 75.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. BrainsWay
Performance |
| Timeline |
| Eat Beyond Global |
| BrainsWay |
Eat Beyond and BrainsWay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and BrainsWay
The main advantage of trading using opposite Eat Beyond and BrainsWay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, BrainsWay 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 BrainsWay will offset losses from the drop in BrainsWay'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 |
| BrainsWay vs. Brainsway | BrainsWay vs. Bluejay Diagnostics | BrainsWay vs. Venus Concept | BrainsWay vs. Icecure Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |