Correlation Between National Beverage and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both National Beverage and Marie Brizard 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 National Beverage and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and Marie Brizard Wine, you can compare the effects of market volatilities on National Beverage and Marie Brizard 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 National Beverage with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Marie Brizard.
Diversification Opportunities for National Beverage and Marie Brizard
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Marie is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine and National 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 National Beverage Corp are associated (or correlated) with Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of National Beverage i.e., National Beverage and Marie Brizard go up and down completely randomly.
Pair Corralation between National Beverage and Marie Brizard
Assuming the 90 days horizon National Beverage Corp is expected to generate 1.58 times more return on investment than Marie Brizard. However, National Beverage is 1.58 times more volatile than Marie Brizard Wine. It trades about -0.02 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.13 per unit of risk. If you would invest 4,160 in National Beverage Corp on November 2, 2024 and sell it today you would lose (120.00) from holding National Beverage Corp or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
National Beverage Corp vs. Marie Brizard Wine
Performance |
| Timeline |
| National Beverage Corp |
| Marie Brizard Wine |
National Beverage and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Marie Brizard
The main advantage of trading using opposite National Beverage and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| National Beverage vs. QINGCI GAMES INC | National Beverage vs. GigaMedia | National Beverage vs. PENN NATL GAMING | National Beverage vs. TROPHY GAMES DEV |
| Marie Brizard vs. Eidesvik Offshore ASA | Marie Brizard vs. HELIOS TECHS INC | Marie Brizard vs. Solstad Offshore ASA | Marie Brizard vs. Bio Techne Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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