Correlation Between National Vision and Dennys Corp
Can any of the company-specific risk be diversified away by investing in both National Vision and Dennys Corp 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 Dennys Corp 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 Dennys Corp, you can compare the effects of market volatilities on National Vision and Dennys Corp 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 Dennys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and Dennys Corp.
Diversification Opportunities for National Vision and Dennys Corp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Dennys is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Dennys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dennys Corp 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 Dennys Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dennys Corp has no effect on the direction of National Vision i.e., National Vision and Dennys Corp go up and down completely randomly.
Pair Corralation between National Vision and Dennys Corp
Considering the 90-day investment horizon National Vision Holdings is expected to generate 0.89 times more return on investment than Dennys Corp. However, National Vision Holdings is 1.13 times less risky than Dennys Corp. It trades about 0.28 of its potential returns per unit of risk. Dennys Corp is currently generating about 0.0 per unit of risk. If you would invest 1,018 in National Vision Holdings on August 31, 2024 and sell it today you would earn a total of 192.00 from holding National Vision Holdings or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Vision Holdings vs. Dennys Corp
Performance |
| Timeline |
| National Vision Holdings |
| Dennys Corp |
National Vision and Dennys Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and Dennys Corp
The main advantage of trading using opposite National Vision and Dennys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Dennys Corp 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 Dennys Corp will offset losses from the drop in Dennys Corp's long position.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |