Correlation Between Splash Beverage and Eastside Distilling
Can any of the company-specific risk be diversified away by investing in both Splash Beverage and Eastside Distilling 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 Splash Beverage and Eastside Distilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Splash Beverage Group and Eastside Distilling, you can compare the effects of market volatilities on Splash Beverage and Eastside Distilling 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 Splash Beverage with a short position of Eastside Distilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Splash Beverage and Eastside Distilling.
Diversification Opportunities for Splash Beverage and Eastside Distilling
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Splash and Eastside is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Splash Beverage Group and Eastside Distilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastside Distilling and Splash Beverage 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 Splash Beverage Group are associated (or correlated) with Eastside Distilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastside Distilling has no effect on the direction of Splash Beverage i.e., Splash Beverage and Eastside Distilling go up and down completely randomly.
Pair Corralation between Splash Beverage and Eastside Distilling
Given the investment horizon of 90 days Splash Beverage Group is expected to generate 1.0 times more return on investment than Eastside Distilling. However, Splash Beverage Group is 1.0 times less risky than Eastside Distilling. It trades about -0.02 of its potential returns per unit of risk. Eastside Distilling is currently generating about -0.03 per unit of risk. If you would invest 21.00 in Splash Beverage Group on August 27, 2024 and sell it today you would lose (1.00) from holding Splash Beverage Group or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Splash Beverage Group vs. Eastside Distilling
Performance |
| Timeline |
| Splash Beverage Group |
| Eastside Distilling |
Splash Beverage and Eastside Distilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Splash Beverage and Eastside Distilling
The main advantage of trading using opposite Splash Beverage and Eastside Distilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Splash Beverage position performs unexpectedly, Eastside Distilling 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 Eastside Distilling will offset losses from the drop in Eastside Distilling's long position.| Splash Beverage vs. Andrew Peller Limited | Splash Beverage vs. Naked Wines plc | Splash Beverage vs. Willamette Valley Vineyards | Splash Beverage vs. Naked Wines plc |
| Eastside Distilling vs. Naked Wines plc | Eastside Distilling vs. Andrew Peller Limited | Eastside Distilling vs. Iconic Brands | Eastside Distilling vs. Naked Wines plc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |