Correlation Between National Vision and KRAFT
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By analyzing existing cross correlation between National Vision Holdings and KRAFT FOODS GROUP, you can compare the effects of market volatilities on National Vision and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and KRAFT.
Diversification Opportunities for National Vision and KRAFT
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and KRAFT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and KRAFT FOODS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT FOODS GROUP 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT FOODS GROUP has no effect on the direction of National Vision i.e., National Vision and KRAFT go up and down completely randomly.
Pair Corralation between National Vision and KRAFT
Considering the 90-day investment horizon National Vision Holdings is expected to generate 4.75 times more return on investment than KRAFT. However, National Vision is 4.75 times more volatile than KRAFT FOODS GROUP. It trades about 0.05 of its potential returns per unit of risk. KRAFT FOODS GROUP is currently generating about 0.09 per unit of risk. If you would invest 1,182 in National Vision Holdings on September 12, 2024 and sell it today you would earn a total of 23.00 from holding National Vision Holdings or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
National Vision Holdings vs. KRAFT FOODS GROUP
Performance |
| Timeline |
| National Vision Holdings |
| KRAFT FOODS GROUP |
National Vision and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and KRAFT
The main advantage of trading using opposite National Vision and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| KRAFT vs. Church Dwight | KRAFT vs. RBC Bearings Incorporated | KRAFT vs. Meiwu Technology Co | KRAFT 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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