Correlation Between Eat Beyond and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and KORE Mining 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 KORE Mining 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 KORE Mining, you can compare the effects of market volatilities on Eat Beyond and KORE Mining 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 KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and KORE Mining.
Diversification Opportunities for Eat Beyond and KORE Mining
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and KORE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining 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 KORE Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Mining has no effect on the direction of Eat Beyond i.e., Eat Beyond and KORE Mining go up and down completely randomly.
Pair Corralation between Eat Beyond and KORE Mining
Assuming the 90 days horizon Eat Beyond Global is expected to generate 2.45 times more return on investment than KORE Mining. However, Eat Beyond is 2.45 times more volatile than KORE Mining. It trades about 0.07 of its potential returns per unit of risk. KORE Mining is currently generating about 0.01 per unit of risk. If you would invest 7.10 in Eat Beyond Global on August 25, 2024 and sell it today you would lose (0.70) from holding Eat Beyond Global or give up 9.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. KORE Mining
Performance |
| Timeline |
| Eat Beyond Global |
| KORE Mining |
Eat Beyond and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and KORE Mining
The main advantage of trading using opposite Eat Beyond and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, KORE Mining 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 KORE Mining will offset losses from the drop in KORE Mining'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 |
| KORE Mining vs. Aurion Resources | KORE Mining vs. Liberty Gold Corp | KORE Mining vs. Rio2 Limited | KORE Mining 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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