Correlation Between Eat Beyond and Blackstone
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Eat Beyond and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Blackstone.
Diversification Opportunities for Eat Beyond and Blackstone
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eat and Blackstone is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Eat Beyond i.e., Eat Beyond and Blackstone go up and down completely randomly.
Pair Corralation between Eat Beyond and Blackstone
Assuming the 90 days horizon Eat Beyond Global is expected to generate 20.63 times more return on investment than Blackstone. However, Eat Beyond is 20.63 times more volatile than Blackstone Group. It trades about 0.17 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.3 per unit of risk. If you would invest 4.00 in Eat Beyond Global on August 28, 2024 and sell it today you would earn a total of 5.40 from holding Eat Beyond Global or generate 135.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Eat Beyond Global vs. Blackstone Group
Performance |
| Timeline |
| Eat Beyond Global |
| Blackstone Group |
Eat Beyond and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Blackstone
The main advantage of trading using opposite Eat Beyond and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |