Correlation Between National Vision and Citizens
Can any of the company-specific risk be diversified away by investing in both National Vision and Citizens 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 Vision and Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Vision Holdings and Citizens, you can compare the effects of market volatilities on National Vision and Citizens 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 Vision with a short position of Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and Citizens.
Diversification Opportunities for National Vision and Citizens
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and Citizens is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens and National Vision 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 Vision Holdings are associated (or correlated) with Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of National Vision i.e., National Vision and Citizens go up and down completely randomly.
Pair Corralation between National Vision and Citizens
Considering the 90-day investment horizon National Vision Holdings is expected to under-perform the Citizens. But the stock apears to be less risky and, when comparing its historical volatility, National Vision Holdings is 1.21 times less risky than Citizens. The stock trades about -0.05 of its potential returns per unit of risk. The Citizens is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Citizens on September 4, 2024 and sell it today you would earn a total of 142.00 from holding Citizens or generate 46.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Vision Holdings vs. Citizens
Performance |
| Timeline |
| National Vision Holdings |
| Citizens |
National Vision and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and Citizens
The main advantage of trading using opposite National Vision and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Citizens 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 Citizens will offset losses from the drop in Citizens' long position.| National Vision vs. Alcon AG | National Vision vs. The Cooper Companies, | National Vision vs. AngioDynamics | National Vision vs. AptarGroup |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |