Correlation Between Boston Beer and FEDEX
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By analyzing existing cross correlation between Boston Beer and FEDEX P 455, you can compare the effects of market volatilities on Boston Beer and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and FEDEX.
Diversification Opportunities for Boston Beer and FEDEX
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and FEDEX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and FEDEX P 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 455 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 455 has no effect on the direction of Boston Beer i.e., Boston Beer and FEDEX go up and down completely randomly.
Pair Corralation between Boston Beer and FEDEX
Considering the 90-day investment horizon Boston Beer is expected to generate 0.6 times more return on investment than FEDEX. However, Boston Beer is 1.67 times less risky than FEDEX. It trades about 0.27 of its potential returns per unit of risk. FEDEX P 455 is currently generating about -0.11 per unit of risk. If you would invest 29,665 in Boston Beer on September 4, 2024 and sell it today you would earn a total of 1,959 from holding Boston Beer or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Boston Beer vs. FEDEX P 455
Performance |
| Timeline |
| Boston Beer |
| FEDEX P 455 |
Boston Beer and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and FEDEX
The main advantage of trading using opposite Boston Beer and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX'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 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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