Correlation Between Stryve Foods and Boosh Plant

Can any of the company-specific risk be diversified away by investing in both Stryve Foods and Boosh Plant 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 Stryve Foods and Boosh Plant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stryve Foods and Boosh Plant Based Brands, you can compare the effects of market volatilities on Stryve Foods and Boosh Plant 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 Stryve Foods with a short position of Boosh Plant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Boosh Plant.

Diversification Opportunities for Stryve Foods and Boosh Plant

-0.34

Correlation Coefficient

Stryve Foods  Boosh Plant

Very good diversification

The 3 months correlation between Stryve and Boosh is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods and Boosh Plant Based Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boosh Plant Based and Stryve Foods 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 Stryve Foods are associated (or correlated) with Boosh Plant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boosh Plant Based has no effect on the direction of Stryve Foods i.e., Stryve Foods and Boosh Plant go up and down completely randomly.

Pair Corralation between Stryve Foods and Boosh Plant

Given the investment horizon of 90 days Stryve Foods is expected to under-perform the Boosh Plant. But the stock apears to be less risky and, when comparing its historical volatility, Stryve Foods is 8.23 times less risky than Boosh Plant. The stock trades about -0.09 of its potential returns per unit of risk. The Boosh Plant Based Brands is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  0.28  in Boosh Plant Based Brands on September 28, 2024 and sell it today you would earn a total of  0.72  from holding Boosh Plant Based Brands or generate 257.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.65%
Values	Daily Returns

Stryve Foods  vs.  Boosh Plant Based Brands

Stryve Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Boosh Plant Based

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Boosh Plant Based Brands are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Boosh Plant reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stryve Foods and Boosh Plant

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

The idea behind Stryve Foods and Boosh Plant Based Brands 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.