Correlation Between National Beverage and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both National Beverage and Accretion Acquisition 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 Accretion Acquisition 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on National Beverage and Accretion Acquisition 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Accretion Acquisition.
Diversification Opportunities for National Beverage and Accretion Acquisition
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Accretion is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of National Beverage i.e., National Beverage and Accretion Acquisition go up and down completely randomly.
Pair Corralation between National Beverage and Accretion Acquisition
Given the investment horizon of 90 days National Beverage is expected to generate 1.67 times less return on investment than Accretion Acquisition. In addition to that, National Beverage is 6.84 times more volatile than Accretion Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.16 per unit of volatility. If you would invest 1,007 in Accretion Acquisition Corp on October 21, 2024 and sell it today you would earn a total of 48.00 from holding Accretion Acquisition Corp or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.99% |
| Values | Daily Returns |
National Beverage Corp vs. Accretion Acquisition Corp
Performance |
| Timeline |
| National Beverage Corp |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Beverage and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Accretion Acquisition
The main advantage of trading using opposite National Beverage and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition'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 |
| Accretion Acquisition vs. Molina Healthcare | Accretion Acquisition vs. Sea | Accretion Acquisition vs. Cheche Group Class | Accretion Acquisition vs. Delek Energy |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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