Correlation Between National Vision and Kunlun Energy
Can any of the company-specific risk be diversified away by investing in both National Vision and Kunlun Energy 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 Kunlun Energy 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 Kunlun Energy, you can compare the effects of market volatilities on National Vision and Kunlun Energy 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 Kunlun Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and Kunlun Energy.
Diversification Opportunities for National Vision and Kunlun Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and Kunlun is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Kunlun Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunlun Energy 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 Kunlun Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunlun Energy has no effect on the direction of National Vision i.e., National Vision and Kunlun Energy go up and down completely randomly.
Pair Corralation between National Vision and Kunlun Energy
If you would invest 996.00 in National Vision Holdings on August 28, 2024 and sell it today you would earn a total of 226.00 from holding National Vision Holdings or generate 22.69% 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. Kunlun Energy
Performance |
| Timeline |
| National Vision Holdings |
| Kunlun Energy |
National Vision and Kunlun Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and Kunlun Energy
The main advantage of trading using opposite National Vision and Kunlun Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Kunlun Energy 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 Kunlun Energy will offset losses from the drop in Kunlun Energy's long position.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| Kunlun Energy vs. Bill Com Holdings | Kunlun Energy vs. Chemours Co | Kunlun Energy vs. Rumble Inc | Kunlun Energy vs. Parker Hannifin |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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