Correlation Between Boston Beer and GRIID Infrastructure
Can any of the company-specific risk be diversified away by investing in both Boston Beer and GRIID Infrastructure 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 Boston Beer and GRIID Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Beer and GRIID Infrastructure Common, you can compare the effects of market volatilities on Boston Beer and GRIID Infrastructure 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 Boston Beer with a short position of GRIID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and GRIID Infrastructure.
Diversification Opportunities for Boston Beer and GRIID Infrastructure
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and GRIID is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and GRIID Infrastructure Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIID Infrastructure and Boston Beer 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 Boston Beer are associated (or correlated) with GRIID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIID Infrastructure has no effect on the direction of Boston Beer i.e., Boston Beer and GRIID Infrastructure go up and down completely randomly.
Pair Corralation between Boston Beer and GRIID Infrastructure
Considering the 90-day investment horizon Boston Beer is expected to generate 1.13 times more return on investment than GRIID Infrastructure. However, Boston Beer is 1.13 times more volatile than GRIID Infrastructure Common. It trades about 0.16 of its potential returns per unit of risk. GRIID Infrastructure Common is currently generating about -0.58 per unit of risk. If you would invest 29,947 in Boston Beer on August 31, 2024 and sell it today you would earn a total of 1,421 from holding Boston Beer or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.64% |
| Values | Daily Returns |
Boston Beer vs. GRIID Infrastructure Common
Performance |
| Timeline |
| Boston Beer |
| GRIID Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Boston Beer and GRIID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and GRIID Infrastructure
The main advantage of trading using opposite Boston Beer and GRIID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, GRIID Infrastructure 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 GRIID Infrastructure will offset losses from the drop in GRIID Infrastructure's long position.| Boston Beer vs. Anheuser Busch Inbev | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Heineken NV | Boston Beer vs. Ambev SA ADR |
| GRIID Infrastructure vs. Getty Copper | GRIID Infrastructure vs. Mangazeya Mining | GRIID Infrastructure vs. Mill City Ventures | GRIID Infrastructure vs. Siriuspoint |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |