Correlation Between Clean Energy and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Clean Energy 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 Clean Energy and Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Beyond Meat, you can compare the effects of market volatilities on Clean Energy 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 Clean Energy with a short position of Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Beyond Meat.
Diversification Opportunities for Clean Energy and Beyond Meat
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clean and Beyond is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat and Clean Energy 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 Clean Energy Fuels 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 Clean Energy i.e., Clean Energy and Beyond Meat go up and down completely randomly.
Pair Corralation between Clean Energy and Beyond Meat
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 1.34 times more return on investment than Beyond Meat. However, Clean Energy is 1.34 times more volatile than Beyond Meat. It trades about 0.12 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.18 per unit of risk. If you would invest 262.00 in Clean Energy Fuels on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Clean Energy Fuels or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. Beyond Meat
Performance |
| Timeline |
| Clean Energy Fuels |
| Beyond Meat |
Clean Energy and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Beyond Meat
The main advantage of trading using opposite Clean Energy and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy 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.| Clean Energy vs. Marathon Petroleum Corp | Clean Energy vs. Neste Oyj | Clean Energy vs. ENEOS Holdings | Clean Energy vs. PTT OILRETBUS FOR BA10 |
| Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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