Correlation Between Vita Coco and Boston Beer
Can any of the company-specific risk be diversified away by investing in both Vita Coco and Boston Beer 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 Vita Coco and Boston Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vita Coco and Boston Beer, you can compare the effects of market volatilities on Vita Coco 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 Vita Coco with a short position of Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and Boston Beer.
Diversification Opportunities for Vita Coco and Boston Beer
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vita and Boston is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer and Vita Coco 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 Vita Coco 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 Vita Coco i.e., Vita Coco and Boston Beer go up and down completely randomly.
Pair Corralation between Vita Coco and Boston Beer
Given the investment horizon of 90 days Vita Coco is expected to generate 0.98 times more return on investment than Boston Beer. However, Vita Coco is 1.02 times less risky than Boston Beer. It trades about 0.12 of its potential returns per unit of risk. Boston Beer is currently generating about 0.05 per unit of risk. If you would invest 3,319 in Vita Coco on June 11, 2025 and sell it today you would earn a total of 535.00 from holding Vita Coco or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vita Coco vs. Boston Beer
Performance |
| Timeline |
| Vita Coco |
| Boston Beer |
Vita Coco and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and Boston Beer
The main advantage of trading using opposite Vita Coco and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco 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.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Revolve Group LLC |
| Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Heineken NV | Boston Beer vs. Anheuser Busch InBev SANV | Boston Beer vs. Molson Coors Brewing |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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