Correlation Between Alkaline Water and Eastside Distilling
Can any of the company-specific risk be diversified away by investing in both Alkaline Water 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 Alkaline Water and Eastside Distilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkaline Water and Eastside Distilling, you can compare the effects of market volatilities on Alkaline Water 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 Alkaline Water with a short position of Eastside Distilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkaline Water and Eastside Distilling.
Diversification Opportunities for Alkaline Water and Eastside Distilling
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alkaline and Eastside is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Alkaline Water and Eastside Distilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastside Distilling and Alkaline Water 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 Alkaline Water 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 Alkaline Water i.e., Alkaline Water and Eastside Distilling go up and down completely randomly.
Pair Corralation between Alkaline Water and Eastside Distilling
If you would invest 59.00 in Eastside Distilling on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Eastside Distilling or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Alkaline Water vs. Eastside Distilling
Performance |
| Timeline |
| Alkaline Water |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastside Distilling |
Alkaline Water and Eastside Distilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkaline Water and Eastside Distilling
The main advantage of trading using opposite Alkaline Water and Eastside Distilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkaline Water 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.| Alkaline Water vs. Zevia Pbc | Alkaline Water vs. Hill Street Beverage | Alkaline Water vs. National Beverage Corp | Alkaline Water vs. Celsius Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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