Correlation Between New Work and Boston Beer
Can any of the company-specific risk be diversified away by investing in both New Work and Boston Beer 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 New Work and Boston Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Work SE and The Boston Beer, you can compare the effects of market volatilities on New Work and Boston Beer 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 New Work with a short position of Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Work and Boston Beer.
Diversification Opportunities for New Work and Boston Beer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Boston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Work SE and The Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer and New Work 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 New Work SE are associated (or correlated) with Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of New Work i.e., New Work and Boston Beer go up and down completely randomly.
Pair Corralation between New Work and Boston Beer
If you would invest 0.00 in New Work SE on October 12, 2024 and sell it today you would earn a total of 0.00 from holding New Work SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
New Work SE vs. The Boston Beer
Performance |
| Timeline |
| New Work SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boston Beer |
New Work and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Work and Boston Beer
The main advantage of trading using opposite New Work and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Work position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer's long position.| New Work vs. ARDAGH METAL PACDL 0001 | New Work vs. Richardson Electronics | New Work vs. Perseus Mining Limited | New Work vs. Delta Electronics Public |
| Boston Beer vs. Singapore Reinsurance | Boston Beer vs. Townsquare Media | Boston Beer vs. GigaMedia | Boston Beer vs. ANTA SPORTS PRODUCT |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |