Correlation Between Livetech and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Livetech 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 Livetech and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Livetech da Bahia and Beyond Meat, you can compare the effects of market volatilities on Livetech 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 Livetech with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Livetech and Beyond Meat.
Diversification Opportunities for Livetech and Beyond Meat
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Livetech and Beyond is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Livetech da Bahia and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Livetech 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 Livetech da Bahia 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 Livetech i.e., Livetech and Beyond Meat go up and down completely randomly.
Pair Corralation between Livetech and Beyond Meat
Assuming the 90 days trading horizon Livetech da Bahia is expected to under-perform the Beyond Meat. But the stock apears to be less risky and, when comparing its historical volatility, Livetech da Bahia is 2.24 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 222.00 in Beyond Meat on September 2, 2024 and sell it today you would lose (67.00) from holding Beyond Meat or give up 30.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Livetech da Bahia vs. Beyond Meat
Performance |
| Timeline |
| Livetech da Bahia |
| Beyond Meat |
Livetech and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Livetech and Beyond Meat
The main advantage of trading using opposite Livetech and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Livetech 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.| Livetech vs. Lupatech SA | Livetech vs. Rossi Residencial SA | Livetech vs. Usinas Siderrgicas de | Livetech vs. Refinaria de Petrleos |
| Beyond Meat vs. JBS SA | Beyond Meat vs. M Dias Branco | Beyond Meat vs. Marfrig Global Foods | Beyond Meat vs. Camil Alimentos 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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