Correlation Between Beyond Meat and Hawkins

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Can any of the company-specific risk be diversified away by investing in both Beyond Meat and Hawkins 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 Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Hawkins, you can compare the effects of market volatilities on Beyond Meat and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Hawkins.

Diversification Opportunities for Beyond Meat and Hawkins

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between Beyond and Hawkins is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Beyond Meat i.e., Beyond Meat and Hawkins go up and down completely randomly.

Pair Corralation between Beyond Meat and Hawkins

Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Hawkins. In addition to that, Beyond Meat is 2.42 times more volatile than Hawkins. It trades about -0.39 of its total potential returns per unit of risk. Hawkins is currently generating about 0.12 per unit of volatility. If you would invest  3,741  in Hawkins on July 6, 2022 and sell it today you would earn a total of  175.00  from holding Hawkins or generate 4.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Beyond Meat  vs.  Hawkins

 Performance (%) 
       Timeline  
Beyond Meat 
Beyond Performance
0 of 100
Over the last 90 days Beyond Meat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Beyond Price Channel

Hawkins 
Hawkins Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hawkins are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Hawkins disclosed solid returns over the last few months and may actually be approaching a breakup point.

Hawkins Price Channel

Beyond Meat and Hawkins Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Beyond Meat and Hawkins

The main advantage of trading using opposite Beyond Meat and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.
Beyond Meat vs. Amazon Inc
The idea behind Beyond Meat and Hawkins 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.
Hawkins vs. Amazon Inc
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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