Correlation Between Kraft Heinz and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz 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 Kraft Heinz and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Beyond Meat, you can compare the effects of market volatilities on Kraft Heinz 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 Kraft Heinz with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Beyond Meat.
Diversification Opportunities for Kraft Heinz and Beyond Meat
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kraft and Beyond is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Kraft Heinz 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 Kraft Heinz Co 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 Kraft Heinz i.e., Kraft Heinz and Beyond Meat go up and down completely randomly.
Pair Corralation between Kraft Heinz and Beyond Meat
Considering the 90-day investment horizon Kraft Heinz Co is expected to under-perform the Beyond Meat. But the stock apears to be less risky and, when comparing its historical volatility, Kraft Heinz Co is 3.96 times less risky than Beyond Meat. The stock trades about -0.04 of its potential returns per unit of risk. The Beyond Meat is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Beyond Meat on August 28, 2024 and sell it today you would lose (137.00) from holding Beyond Meat or give up 20.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Beyond Meat
Performance |
| Timeline |
| Kraft Heinz |
| Beyond Meat |
Kraft Heinz and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Beyond Meat
The main advantage of trading using opposite Kraft Heinz and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz 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.| Kraft Heinz vs. Bellring Brands LLC | Kraft Heinz vs. Ingredion Incorporated | Kraft Heinz vs. Nomad Foods | Kraft Heinz vs. Simply Good Foods |
| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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