Correlation Between Eat Beyond and GENERAL
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By analyzing existing cross correlation between Eat Beyond Global and GENERAL ELEC CAP, you can compare the effects of market volatilities on Eat Beyond and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Beyond and GENERAL.
Diversification Opportunities for Eat Beyond and GENERAL
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eat and GENERAL is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Eat Beyond Global and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Eat Beyond i.e., Eat Beyond and GENERAL go up and down completely randomly.
Pair Corralation between Eat Beyond and GENERAL
Assuming the 90 days horizon Eat Beyond Global is expected to generate 31.87 times more return on investment than GENERAL. However, Eat Beyond is 31.87 times more volatile than GENERAL ELEC CAP. It trades about 0.22 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.16 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 | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Eat Beyond Global vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Eat Beyond Global |
| GENERAL ELEC CAP |
Eat Beyond and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Beyond and GENERAL
The main advantage of trading using opposite Eat Beyond and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Beyond position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Eat Beyond vs. Blackstone Group | Eat Beyond vs. BlackRock | Eat Beyond vs. Apollo Global Management | Eat Beyond vs. Bank of New |
| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Eat Beyond Global | GENERAL 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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