Correlation Between Eat Beyond and Magellan Gold
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Magellan 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 Magellan 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 Magellan Gold Corp, you can compare the effects of market volatilities on Eat Beyond and Magellan 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 Magellan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Magellan Gold.
Diversification Opportunities for Eat Beyond and Magellan Gold
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Magellan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Magellan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Gold Corp 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 Magellan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magellan Gold Corp has no effect on the direction of Eat Beyond i.e., Eat Beyond and Magellan Gold go up and down completely randomly.
Pair Corralation between Eat Beyond and Magellan Gold
Assuming the 90 days horizon Eat Beyond Global is expected to generate 10.01 times more return on investment than Magellan Gold. However, Eat Beyond is 10.01 times more volatile than Magellan Gold Corp. It trades about 0.22 of its potential returns per unit of risk. Magellan Gold Corp is currently generating about -0.06 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. Magellan Gold Corp
Performance |
| Timeline |
| Eat Beyond Global |
| Magellan Gold Corp |
Eat Beyond and Magellan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Magellan Gold
The main advantage of trading using opposite Eat Beyond and Magellan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Magellan 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 Magellan Gold will offset losses from the drop in Magellan 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 |
| Magellan Gold vs. Morningstar Unconstrained Allocation | Magellan Gold vs. High Yield Municipal Fund | Magellan Gold vs. Knife River | Magellan Gold vs. Klckner Co SE |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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