Correlation Between Eat Beyond and AMERICAN
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By analyzing existing cross correlation between Eat Beyond Global and AMERICAN HONDA FINANCE, you can compare the effects of market volatilities on Eat Beyond and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and AMERICAN.
Diversification Opportunities for Eat Beyond and AMERICAN
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and AMERICAN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and AMERICAN HONDA FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN HONDA FINANCE 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN HONDA FINANCE has no effect on the direction of Eat Beyond i.e., Eat Beyond and AMERICAN go up and down completely randomly.
Pair Corralation between Eat Beyond and AMERICAN
Assuming the 90 days horizon Eat Beyond Global is expected to generate 57.31 times more return on investment than AMERICAN. However, Eat Beyond is 57.31 times more volatile than AMERICAN HONDA FINANCE. It trades about 0.21 of its potential returns per unit of risk. AMERICAN HONDA FINANCE is currently generating about -0.21 per unit of risk. If you would invest 3.20 in Eat Beyond Global on September 1, 2024 and sell it today you would earn a total of 3.40 from holding Eat Beyond Global or generate 106.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Eat Beyond Global vs. AMERICAN HONDA FINANCE
Performance |
| Timeline |
| Eat Beyond Global |
| AMERICAN HONDA FINANCE |
Eat Beyond and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and AMERICAN
The main advantage of trading using opposite Eat Beyond and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. American Express | AMERICAN vs. Chevron 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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