Correlation Between 694308KC0 and Boston Beer
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By analyzing existing cross correlation between PCG 44 01 MAR 32 and Boston Beer, you can compare the effects of market volatilities on 694308KC0 and Boston Beer 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 694308KC0 with a short position of Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KC0 and Boston Beer.
Diversification Opportunities for 694308KC0 and Boston Beer
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 694308KC0 and Boston is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PCG 44 01 MAR 32 and Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer and 694308KC0 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 PCG 44 01 MAR 32 are associated (or correlated) with Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of 694308KC0 i.e., 694308KC0 and Boston Beer go up and down completely randomly.
Pair Corralation between 694308KC0 and Boston Beer
Assuming the 90 days trading horizon PCG 44 01 MAR 32 is expected to under-perform the Boston Beer. But the bond apears to be less risky and, when comparing its historical volatility, PCG 44 01 MAR 32 is 1.6 times less risky than Boston Beer. The bond trades about -0.01 of its potential returns per unit of risk. The Boston Beer is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 32,263 in Boston Beer on September 24, 2024 and sell it today you would lose (1,986) from holding Boston Beer or give up 6.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 61.85% |
Values | Daily Returns |
PCG 44 01 MAR 32 vs. Boston Beer
Performance |
Timeline |
PCG 44 01 |
Boston Beer |
694308KC0 and Boston Beer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 694308KC0 and Boston Beer
The main advantage of trading using opposite 694308KC0 and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KC0 position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer's long position.694308KC0 vs. Boston Beer | 694308KC0 vs. Celsius Holdings | 694308KC0 vs. Sealed Air | 694308KC0 vs. Monster Beverage Corp |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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