Correlation Between National Beverage and China Tontine
Can any of the company-specific risk be diversified away by investing in both National Beverage and China Tontine 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 China Tontine 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 China Tontine Wines, you can compare the effects of market volatilities on National Beverage and China Tontine 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 China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and China Tontine.
Diversification Opportunities for National Beverage and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines 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 China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of National Beverage i.e., National Beverage and China Tontine go up and down completely randomly.
Pair Corralation between National Beverage and China Tontine
Given the investment horizon of 90 days National Beverage is expected to generate 321.95 times less return on investment than China Tontine. But when comparing it to its historical volatility, National Beverage Corp is 49.05 times less risky than China Tontine. It trades about 0.01 of its potential returns per unit of risk. China Tontine Wines is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.40 in China Tontine Wines on August 30, 2024 and sell it today you would earn a total of 3.70 from holding China Tontine Wines or generate 108.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.98% |
| Values | Daily Returns |
National Beverage Corp vs. China Tontine Wines
Performance |
| Timeline |
| National Beverage Corp |
| China Tontine Wines |
National Beverage and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and China Tontine
The main advantage of trading using opposite National Beverage and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine's 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 |
| China Tontine vs. Aristocrat Group Corp | China Tontine vs. Naked Wines plc | China Tontine vs. Willamette Valley Vineyards | China Tontine vs. Andrew Peller Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |