Correlation Between Boston Beer and KINDER
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By analyzing existing cross correlation between Boston Beer and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Boston Beer and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and KINDER.
Diversification Opportunities for Boston Beer and KINDER
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and KINDER is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Boston Beer i.e., Boston Beer and KINDER go up and down completely randomly.
Pair Corralation between Boston Beer and KINDER
Considering the 90-day investment horizon Boston Beer is expected to generate 2.18 times more return on investment than KINDER. However, Boston Beer is 2.18 times more volatile than KINDER MORGAN ENERGY. It trades about 0.13 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about -0.03 per unit of risk. If you would invest 28,007 in Boston Beer on September 3, 2024 and sell it today you would earn a total of 3,617 from holding Boston Beer or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Boston Beer vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| Boston Beer |
| KINDER MORGAN ENERGY |
Boston Beer and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and KINDER
The main advantage of trading using opposite Boston Beer and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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