Correlation Between National Beverage and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both National Beverage and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on National Beverage and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and FUYO GENERAL.
Diversification Opportunities for National Beverage and FUYO GENERAL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and FUYO is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of National Beverage i.e., National Beverage and FUYO GENERAL go up and down completely randomly.
Pair Corralation between National Beverage and FUYO GENERAL
Assuming the 90 days horizon National Beverage Corp is expected to generate 1.34 times more return on investment than FUYO GENERAL. However, National Beverage is 1.34 times more volatile than FUYO GENERAL LEASE. It trades about 0.2 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.24 per unit of risk. If you would invest 4,180 in National Beverage Corp on August 28, 2024 and sell it today you would earn a total of 320.00 from holding National Beverage Corp or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Beverage Corp vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| National Beverage Corp |
| FUYO GENERAL LEASE |
National Beverage and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and FUYO GENERAL
The main advantage of trading using opposite National Beverage and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| National Beverage vs. CEOTRONICS | National Beverage vs. Platinum Investment Management | National Beverage vs. Perdoceo Education | National Beverage vs. ANTA SPORTS PRODUCT |
| FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings | FUYO GENERAL vs. Origin Agritech | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |