Correlation Between National Vision and MarineMax
Can any of the company-specific risk be diversified away by investing in both National Vision and MarineMax 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 MarineMax 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 MarineMax, you can compare the effects of market volatilities on National Vision and MarineMax 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 MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and MarineMax.
Diversification Opportunities for National Vision and MarineMax
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and MarineMax is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax 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 MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of National Vision i.e., National Vision and MarineMax go up and down completely randomly.
Pair Corralation between National Vision and MarineMax
Considering the 90-day investment horizon National Vision Holdings is expected to generate 0.81 times more return on investment than MarineMax. However, National Vision Holdings is 1.23 times less risky than MarineMax. It trades about 0.07 of its potential returns per unit of risk. MarineMax is currently generating about -0.02 per unit of risk. If you would invest 985.00 in National Vision Holdings on October 20, 2024 and sell it today you would earn a total of 95.00 from holding National Vision Holdings or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Vision Holdings vs. MarineMax
Performance |
| Timeline |
| National Vision Holdings |
| MarineMax |
National Vision and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and MarineMax
The main advantage of trading using opposite National Vision and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, MarineMax 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 MarineMax will offset losses from the drop in MarineMax's long position.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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