Correlation Between National Vision and School Specialty
Can any of the company-specific risk be diversified away by investing in both National Vision and School Specialty 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 School Specialty 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 School Specialty, you can compare the effects of market volatilities on National Vision and School Specialty 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 School Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and School Specialty.
Diversification Opportunities for National Vision and School Specialty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and School is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and School Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on School Specialty 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 School Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of School Specialty has no effect on the direction of National Vision i.e., National Vision and School Specialty go up and down completely randomly.
Pair Corralation between National Vision and School Specialty
If you would invest 980.00 in National Vision Holdings on August 24, 2024 and sell it today you would earn a total of 175.00 from holding National Vision Holdings or generate 17.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Vision Holdings vs. School Specialty
Performance |
| Timeline |
| National Vision Holdings |
| School Specialty |
National Vision and School Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and School Specialty
The main advantage of trading using opposite National Vision and School Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, School Specialty 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 School Specialty will offset losses from the drop in School Specialty's long position.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| School Specialty vs. Card Factory plc | School Specialty vs. Ceconomy AG ADR | School Specialty vs. Bowlin Travel Centers | School Specialty vs. National Vision Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |