Correlation Between Boston Beer and KYB PORATION

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Boston Beer and KYB PORATION 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 Boston Beer and KYB PORATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and KYB PORATION, you can compare the effects of market volatilities on Boston Beer and KYB PORATION 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 Boston Beer with a short position of KYB PORATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and KYB PORATION.

Diversification Opportunities for Boston Beer and KYB PORATION

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Boston and KYB is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and KYB PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYB PORATION and Boston Beer 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 The Boston Beer are associated (or correlated) with KYB PORATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYB PORATION has no effect on the direction of Boston Beer i.e., Boston Beer and KYB PORATION go up and down completely randomly.

Pair Corralation between Boston Beer and KYB PORATION

Assuming the 90 days trading horizon Boston Beer is expected to generate 8.16 times less return on investment than KYB PORATION. In addition to that, Boston Beer is 1.19 times more volatile than KYB PORATION. It trades about 0.05 of its total potential returns per unit of risk. KYB PORATION is currently generating about 0.5 per unit of volatility. If you would invest  1,520  in KYB PORATION on September 22, 2024 and sell it today you would earn a total of  190.00  from holding KYB PORATION or generate 12.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

The Boston Beer  vs.  KYB PORATION

 Performance 
       Timeline  
Boston Beer 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in The Boston Beer are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Boston Beer reported solid returns over the last few months and may actually be approaching a breakup point.
KYB PORATION 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in KYB PORATION are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, KYB PORATION reported solid returns over the last few months and may actually be approaching a breakup point.

Boston Beer and KYB PORATION Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boston Beer and KYB PORATION

The main advantage of trading using opposite Boston Beer and KYB PORATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, KYB PORATION 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 KYB PORATION will offset losses from the drop in KYB PORATION's long position.
The idea behind The Boston Beer and KYB PORATION 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites