Correlation Between Eat Beyond and FIRST
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By analyzing existing cross correlation between Eat Beyond Global and FIRST AMERN FINL, you can compare the effects of market volatilities on Eat Beyond and FIRST 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 FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and FIRST.
Diversification Opportunities for Eat Beyond and FIRST
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eat and FIRST is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and FIRST AMERN FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST AMERN FINL 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 FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST AMERN FINL has no effect on the direction of Eat Beyond i.e., Eat Beyond and FIRST go up and down completely randomly.
Pair Corralation between Eat Beyond and FIRST
Assuming the 90 days horizon Eat Beyond Global is expected to generate 46.69 times more return on investment than FIRST. However, Eat Beyond is 46.69 times more volatile than FIRST AMERN FINL. It trades about 0.22 of its potential returns per unit of risk. FIRST AMERN FINL is currently generating about -0.1 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 | 28.57% |
| Values | Daily Returns |
Eat Beyond Global vs. FIRST AMERN FINL
Performance |
| Timeline |
| Eat Beyond Global |
| FIRST AMERN FINL |
Eat Beyond and FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and FIRST
The main advantage of trading using opposite Eat Beyond and FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, FIRST 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 FIRST will offset losses from the drop in FIRST's long position.| Eat Beyond vs. Blackstone Group | Eat Beyond vs. BlackRock | Eat Beyond vs. Apollo Global Management | Eat Beyond vs. Bank of New |
| FIRST vs. AEP TEX INC | FIRST vs. US BANK NATIONAL | FIRST vs. Eat Beyond Global | FIRST vs. Charles Schwab 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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