Correlation Between Tinley Beverage and Monster Beverage

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

By analyzing existing cross correlation between The Tinley Beverage and Monster Beverage Corp, you can compare the effects of market volatilities on Tinley Beverage and Monster Beverage 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 Tinley Beverage with a short position of Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tinley Beverage and Monster Beverage.

Diversification Opportunities for Tinley Beverage and Monster Beverage

0.0

Correlation Coefficient

Tinley Beverage  Monster Beverage

Pay attention - limited upside

The 3 months correlation between Tinley and Monster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Tinley Beverage and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp and Tinley Beverage 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 Tinley Beverage are associated (or correlated) with Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of Tinley Beverage i.e., Tinley Beverage and Monster Beverage go up and down completely randomly.

Pair Corralation between Tinley Beverage and Monster Beverage

If you would invest  6,056  in Monster Beverage Corp on May 7, 2025 and sell it today you would lose (21.00) from holding Monster Beverage Corp or give up 0.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

The Tinley Beverage  vs.  Monster Beverage Corp

Tinley Beverage

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Tinley Beverage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Tinley Beverage is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Monster Beverage Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Monster Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Monster Beverage is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tinley Beverage and Monster Beverage

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

The idea behind The Tinley Beverage and Monster Beverage Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.