Correlation Between Eat Beyond and Smoore International
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Smoore International 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 Smoore International 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 Smoore International Holdings, you can compare the effects of market volatilities on Eat Beyond and Smoore International 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 Smoore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Smoore International.
Diversification Opportunities for Eat Beyond and Smoore International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and Smoore is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Smoore International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smoore International 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 Smoore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smoore International has no effect on the direction of Eat Beyond i.e., Eat Beyond and Smoore International go up and down completely randomly.
Pair Corralation between Eat Beyond and Smoore International
Assuming the 90 days horizon Eat Beyond Global is expected to generate 5.09 times more return on investment than Smoore International. However, Eat Beyond is 5.09 times more volatile than Smoore International Holdings. It trades about 0.07 of its potential returns per unit of risk. Smoore International Holdings is currently generating about 0.0 per unit of risk. If you would invest 17.00 in Eat Beyond Global on August 29, 2024 and sell it today you would lose (7.60) from holding Eat Beyond Global or give up 44.71% 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. Smoore International Holdings
Performance |
| Timeline |
| Eat Beyond Global |
| Smoore International |
Eat Beyond and Smoore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Smoore International
The main advantage of trading using opposite Eat Beyond and Smoore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Smoore International 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 Smoore International will offset losses from the drop in Smoore International'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 |
| Smoore International vs. Imperial Brands PLC | Smoore International vs. RLX Technology | Smoore International vs. British American Tobacco | Smoore International vs. Turning Point Brands |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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