Correlation Between Beyond Meat and JSL SA

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

By analyzing existing cross correlation between Beyond Meat and JSL SA, you can compare the effects of market volatilities on Beyond Meat and JSL SA 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 JSL SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and JSL SA.

Diversification Opportunities for Beyond Meat and JSL SA

0.15

Correlation Coefficient

Beyond Meat  JSL SA

Average diversification

The 3 months correlation between Beyond and JSL is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and JSL SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSL SA 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 JSL SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSL SA has no effect on the direction of Beyond Meat i.e., Beyond Meat and JSL SA go up and down completely randomly.

Pair Corralation between Beyond Meat and JSL SA

Assuming the 90 days trading horizon Beyond Meat is expected to generate 2.53 times less return on investment than JSL SA. In addition to that, Beyond Meat is 1.13 times more volatile than JSL SA. It trades about 0.01 of its total potential returns per unit of risk. JSL SA is currently generating about 0.02 per unit of volatility. If you would invest  558.00  in JSL SA on December 23, 2024 and sell it today you would earn a total of  5.00  from holding JSL SA or generate 0.9% return on investment over 90 days.

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

Beyond Meat  vs.  JSL SA

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. Despite somewhat strong basic indicators, Beyond Meat is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

JSL SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JSL SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, JSL SA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Beyond Meat and JSL SA

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

The idea behind Beyond Meat and JSL SA 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.