Correlation Between Live Ventures and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Live Ventures 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 Live Ventures and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Beyond Meat, you can compare the effects of market volatilities on Live Ventures 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 Live Ventures with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Beyond Meat.
Diversification Opportunities for Live Ventures and Beyond Meat
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Live and Beyond is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Live Ventures 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 Live Ventures 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 Live Ventures i.e., Live Ventures and Beyond Meat go up and down completely randomly.
Pair Corralation between Live Ventures and Beyond Meat
Given the investment horizon of 90 days Live Ventures is expected to under-perform the Beyond Meat. But the stock apears to be less risky and, when comparing its historical volatility, Live Ventures is 1.01 times less risky than Beyond Meat. The stock trades about -0.23 of its potential returns per unit of risk. The Beyond Meat is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Beyond Meat on November 29, 2024 and sell it today you would lose (26.00) from holding Beyond Meat or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. Beyond Meat
Performance |
| Timeline |
| Live Ventures |
| Beyond Meat |
Live Ventures and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Beyond Meat
The main advantage of trading using opposite Live Ventures and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures 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.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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