Correlation Between National Beverage and BAIYU Holdings
Can any of the company-specific risk be diversified away by investing in both National Beverage and BAIYU Holdings 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 Beverage and BAIYU Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and BAIYU Holdings, you can compare the effects of market volatilities on National Beverage and BAIYU Holdings 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 Beverage with a short position of BAIYU Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and BAIYU Holdings.
Diversification Opportunities for National Beverage and BAIYU Holdings
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and BAIYU is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and BAIYU Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIYU Holdings and National Beverage 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 Beverage Corp are associated (or correlated) with BAIYU Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIYU Holdings has no effect on the direction of National Beverage i.e., National Beverage and BAIYU Holdings go up and down completely randomly.
Pair Corralation between National Beverage and BAIYU Holdings
Given the investment horizon of 90 days National Beverage Corp is expected to generate 0.2 times more return on investment than BAIYU Holdings. However, National Beverage Corp is 5.09 times less risky than BAIYU Holdings. It trades about 0.03 of its potential returns per unit of risk. BAIYU Holdings is currently generating about -0.04 per unit of risk. If you would invest 4,613 in National Beverage Corp on September 4, 2024 and sell it today you would earn a total of 378.00 from holding National Beverage Corp or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
National Beverage Corp vs. BAIYU Holdings
Performance |
| Timeline |
| National Beverage Corp |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Beverage and BAIYU Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and BAIYU Holdings
The main advantage of trading using opposite National Beverage and BAIYU Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, BAIYU Holdings 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 BAIYU Holdings will offset losses from the drop in BAIYU Holdings' long position.| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
| BAIYU Holdings vs. GE Vernova LLC | BAIYU Holdings vs. NRG Energy | BAIYU Holdings vs. Old Republic International | BAIYU Holdings vs. Cincinnati Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets |