Correlation Between Eat Beyond and Sonova Holding
Can any of the company-specific risk be diversified away by investing in both Eat Beyond and Sonova Holding 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 Sonova Holding 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 Sonova Holding AG, you can compare the effects of market volatilities on Eat Beyond and Sonova Holding 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 Sonova Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and Sonova Holding.
Diversification Opportunities for Eat Beyond and Sonova Holding
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eat and Sonova is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and Sonova Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonova Holding AG 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 Sonova Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonova Holding AG has no effect on the direction of Eat Beyond i.e., Eat Beyond and Sonova Holding go up and down completely randomly.
Pair Corralation between Eat Beyond and Sonova Holding
Assuming the 90 days horizon Eat Beyond Global is expected to generate 34.15 times more return on investment than Sonova Holding. However, Eat Beyond is 34.15 times more volatile than Sonova Holding AG. It trades about 0.21 of its potential returns per unit of risk. Sonova Holding AG is currently generating about -0.23 per unit of risk. If you would invest 3.20 in Eat Beyond Global on August 31, 2024 and sell it today you would earn a total of 3.80 from holding Eat Beyond Global or generate 118.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Beyond Global vs. Sonova Holding AG
Performance |
| Timeline |
| Eat Beyond Global |
| Sonova Holding AG |
Eat Beyond and Sonova Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and Sonova Holding
The main advantage of trading using opposite Eat Beyond and Sonova Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, Sonova Holding 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 Sonova Holding will offset losses from the drop in Sonova Holding'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 |
| Sonova Holding vs. GN Store Nord | Sonova Holding vs. GN Store Nord | Sonova Holding vs. Bone Biologics Corp | Sonova Holding vs. Smith Nephew plc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |