Correlation Between Fresh Grapes and Eastside Distilling
Can any of the company-specific risk be diversified away by investing in both Fresh Grapes 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 Fresh Grapes and Eastside Distilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresh Grapes LLC and Eastside Distilling, you can compare the effects of market volatilities on Fresh Grapes 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 Fresh Grapes with a short position of Eastside Distilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresh Grapes and Eastside Distilling.
Diversification Opportunities for Fresh Grapes and Eastside Distilling
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fresh and Eastside is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fresh Grapes LLC and Eastside Distilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastside Distilling and Fresh Grapes 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 Fresh Grapes LLC 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 Fresh Grapes i.e., Fresh Grapes and Eastside Distilling go up and down completely randomly.
Pair Corralation between Fresh Grapes and Eastside Distilling
Given the investment horizon of 90 days Fresh Grapes LLC is expected to generate 1.13 times more return on investment than Eastside Distilling. However, Fresh Grapes is 1.13 times more volatile than Eastside Distilling. It trades about 0.03 of its potential returns per unit of risk. Eastside Distilling is currently generating about 0.0 per unit of risk. If you would invest 114.00 in Fresh Grapes LLC on November 2, 2024 and sell it today you would lose (41.00) from holding Fresh Grapes LLC or give up 35.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Fresh Grapes LLC vs. Eastside Distilling
Performance |
| Timeline |
| Fresh Grapes LLC |
| Eastside Distilling |
Fresh Grapes and Eastside Distilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresh Grapes and Eastside Distilling
The main advantage of trading using opposite Fresh Grapes and Eastside Distilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresh Grapes 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.| Fresh Grapes vs. Andrew Peller Limited | Fresh Grapes vs. Naked Wines plc | Fresh Grapes vs. Willamette Valley Vineyards | Fresh Grapes vs. The Tinley Beverage |
| Eastside Distilling vs. Iconic Brands | Eastside Distilling vs. Andrew Peller Limited | Eastside Distilling vs. Splash Beverage Group | Eastside Distilling vs. Fresh Grapes LLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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