Correlation Between Boston Beer and Kairous Acquisition
Can any of the company-specific risk be diversified away by investing in both Boston Beer and Kairous Acquisition 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 Kairous Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Beer and Kairous Acquisition Corp, you can compare the effects of market volatilities on Boston Beer and Kairous Acquisition 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 Kairous Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Kairous Acquisition.
Diversification Opportunities for Boston Beer and Kairous Acquisition
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and Kairous is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and Kairous Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kairous Acquisition Corp 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 Kairous Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kairous Acquisition Corp has no effect on the direction of Boston Beer i.e., Boston Beer and Kairous Acquisition go up and down completely randomly.
Pair Corralation between Boston Beer and Kairous Acquisition
If you would invest 29,107 in Boston Beer on September 1, 2024 and sell it today you would earn a total of 2,517 from holding Boston Beer or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Beer vs. Kairous Acquisition Corp
Performance |
| Timeline |
| Boston Beer |
| Kairous Acquisition Corp |
Boston Beer and Kairous Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and Kairous Acquisition
The main advantage of trading using opposite Boston Beer and Kairous Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, Kairous Acquisition 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 Kairous Acquisition will offset losses from the drop in Kairous Acquisition'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 |
| Kairous Acquisition vs. Visa Class A | Kairous Acquisition vs. Diamond Hill Investment | Kairous Acquisition vs. Distoken Acquisition | Kairous Acquisition vs. Associated Capital Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |