Correlation Between National Vision and Dana
Can any of the company-specific risk be diversified away by investing in both National Vision and Dana 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 Dana 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 Dana Inc, you can compare the effects of market volatilities on National Vision and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and Dana.
Diversification Opportunities for National Vision and Dana
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Dana is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of National Vision i.e., National Vision and Dana go up and down completely randomly.
Pair Corralation between National Vision and Dana
Considering the 90-day investment horizon National Vision is expected to generate 1411.29 times less return on investment than Dana. But when comparing it to its historical volatility, National Vision Holdings is 1.51 times less risky than Dana. It trades about 0.0 of its potential returns per unit of risk. Dana Inc is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Dana Inc on September 4, 2024 and sell it today you would earn a total of 370.00 from holding Dana Inc or generate 48.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Vision Holdings vs. Dana Inc
Performance |
| Timeline |
| National Vision Holdings |
| Dana Inc |
National Vision and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and Dana
The main advantage of trading using opposite National Vision and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| National Vision vs. Alcon AG | National Vision vs. The Cooper Companies, | National Vision vs. AngioDynamics | National Vision vs. AptarGroup |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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