Correlation Between Boa Safra and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Boa Safra and Beyond Meat 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 Boa Safra and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boa Safra Sementes and Beyond Meat, you can compare the effects of market volatilities on Boa Safra and Beyond Meat 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 Boa Safra with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boa Safra and Beyond Meat.
Diversification Opportunities for Boa Safra and Beyond Meat
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boa and Beyond is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Boa Safra Sementes and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Boa Safra 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 Boa Safra Sementes are associated (or correlated) with Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of Boa Safra i.e., Boa Safra and Beyond Meat go up and down completely randomly.
Pair Corralation between Boa Safra and Beyond Meat
Assuming the 90 days trading horizon Boa Safra Sementes is expected to under-perform the Beyond Meat. But the stock apears to be less risky and, when comparing its historical volatility, Boa Safra Sementes is 2.42 times less risky than Beyond Meat. The stock trades about -0.04 of its potential returns per unit of risk. The Beyond Meat is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Beyond Meat on September 14, 2024 and sell it today you would lose (47.00) from holding Beyond Meat or give up 29.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Boa Safra Sementes vs. Beyond Meat
Performance |
| Timeline |
| Boa Safra Sementes |
| Beyond Meat |
Boa Safra and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boa Safra and Beyond Meat
The main advantage of trading using opposite Boa Safra and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boa Safra position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| Boa Safra vs. CM Hospitalar SA | Boa Safra vs. The Trade Desk | Boa Safra vs. Marvell Technology | Boa Safra vs. Unity Software |
| Beyond Meat vs. Intelbras SA | Beyond Meat vs. CSN Minerao SA | Beyond Meat vs. Boa Safra Sementes | Beyond Meat vs. Aeris Indstria e |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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