Correlation Between Beyond Meat and MYFAIR GOLD

Can any of the company-specific risk be diversified away by investing in both Beyond Meat and MYFAIR GOLD 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 Beyond Meat and MYFAIR GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beyond Meat and MYFAIR GOLD P, you can compare the effects of market volatilities on Beyond Meat and MYFAIR GOLD 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 Beyond Meat with a short position of MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and MYFAIR GOLD.

Diversification Opportunities for Beyond Meat and MYFAIR GOLD

0.52

Correlation Coefficient

Beyond Meat  MYFAIR GOLD

Very weak diversification

The 3 months correlation between Beyond and MYFAIR is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P and Beyond Meat 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 Beyond Meat are associated (or correlated) with MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of Beyond Meat i.e., Beyond Meat and MYFAIR GOLD go up and down completely randomly.

Pair Corralation between Beyond Meat and MYFAIR GOLD

Assuming the 90 days trading horizon Beyond Meat is expected to under-perform the MYFAIR GOLD. In addition to that, Beyond Meat is 1.11 times more volatile than MYFAIR GOLD P. It trades about -0.08 of its total potential returns per unit of risk. MYFAIR GOLD P is currently generating about 0.03 per unit of volatility. If you would invest  110.00  in MYFAIR GOLD P on November 19, 2024 and sell it today you would earn a total of  6.00  from holding MYFAIR GOLD P or generate 5.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Beyond Meat  vs.  MYFAIR GOLD P

Beyond Meat

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beyond Meat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MYFAIR GOLD P

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MYFAIR GOLD P are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, MYFAIR GOLD reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beyond Meat and MYFAIR GOLD

The main advantage of trading using opposite Beyond Meat and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD's long position.

The idea behind Beyond Meat and MYFAIR GOLD P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.