Correlation Between GP Investments and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both GP Investments and Beyond Meat 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 GP Investments and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Investments and Beyond Meat, you can compare the effects of market volatilities on GP Investments and Beyond Meat 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 GP Investments with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Investments and Beyond Meat.
Diversification Opportunities for GP Investments and Beyond Meat
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GPIV33 and Beyond is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GP Investments and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and GP Investments 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 GP Investments are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of GP Investments i.e., GP Investments and Beyond Meat go up and down completely randomly.
Pair Corralation between GP Investments and Beyond Meat
Assuming the 90 days trading horizon GP Investments is expected to generate 0.54 times more return on investment than Beyond Meat. However, GP Investments is 1.86 times less risky than Beyond Meat. It trades about 0.06 of its potential returns per unit of risk. Beyond Meat is currently generating about 0.01 per unit of risk. If you would invest 283.00 in GP Investments on August 26, 2024 and sell it today you would earn a total of 115.00 from holding GP Investments or generate 40.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
GP Investments vs. Beyond Meat
Performance |
| Timeline |
| GP Investments |
| Beyond Meat |
GP Investments and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Investments and Beyond Meat
The main advantage of trading using opposite GP Investments and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Investments position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| GP Investments vs. Verizon Communications | GP Investments vs. Apartment Investment and | GP Investments vs. New Oriental Education | GP Investments vs. METISA Metalrgica Timboense |
| Beyond Meat vs. JBS SA | Beyond Meat vs. M Dias Branco | Beyond Meat vs. Marfrig Global Foods | Beyond Meat vs. Jalles Machado SA |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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