Correlation Between Flow Beverage and Eq Energy
Can any of the company-specific risk be diversified away by investing in both Flow Beverage and Eq Energy 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 Flow Beverage and Eq Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Beverage Corp and Eq Energy Drink, you can compare the effects of market volatilities on Flow Beverage and Eq Energy 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 Flow Beverage with a short position of Eq Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Beverage and Eq Energy.
Diversification Opportunities for Flow Beverage and Eq Energy
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flow and EQLB is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Flow Beverage Corp and Eq Energy Drink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eq Energy Drink and Flow Beverage 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 Flow Beverage Corp are associated (or correlated) with Eq Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eq Energy Drink has no effect on the direction of Flow Beverage i.e., Flow Beverage and Eq Energy go up and down completely randomly.
Pair Corralation between Flow Beverage and Eq Energy
Assuming the 90 days horizon Flow Beverage Corp is expected to under-perform the Eq Energy. But the otc stock apears to be less risky and, when comparing its historical volatility, Flow Beverage Corp is 3.79 times less risky than Eq Energy. The otc stock trades about 0.0 of its potential returns per unit of risk. The Eq Energy Drink is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.08 in Eq Energy Drink on August 24, 2024 and sell it today you would earn a total of 0.06 from holding Eq Energy Drink or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Beverage Corp vs. Eq Energy Drink
Performance |
| Timeline |
| Flow Beverage Corp |
| Eq Energy Drink |
Flow Beverage and Eq Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Beverage and Eq Energy
The main advantage of trading using opposite Flow Beverage and Eq Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Beverage position performs unexpectedly, Eq Energy 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 Eq Energy will offset losses from the drop in Eq Energy's long position.| Flow Beverage vs. Fbec Worldwide | Flow Beverage vs. National Beverage Corp | Flow Beverage vs. Vita Coco | Flow Beverage vs. Hill Street Beverage |
| Eq Energy vs. Fbec Worldwide | Eq Energy vs. National Beverage Corp | Eq Energy vs. Vita Coco | Eq Energy vs. Hill Street Beverage |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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