Correlation Between National Beverage and Expand Energy
Can any of the company-specific risk be diversified away by investing in both National Beverage and Expand Energy 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 Expand Energy 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 Expand Energy, you can compare the effects of market volatilities on National Beverage and Expand Energy 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 Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Expand Energy.
Diversification Opportunities for National Beverage and Expand Energy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and Expand is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy 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 Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of National Beverage i.e., National Beverage and Expand Energy go up and down completely randomly.
Pair Corralation between National Beverage and Expand Energy
Given the investment horizon of 90 days National Beverage Corp is expected to under-perform the Expand Energy. In addition to that, National Beverage is 2.04 times more volatile than Expand Energy. It trades about -0.09 of its total potential returns per unit of risk. Expand Energy is currently generating about 0.09 per unit of volatility. If you would invest 9,517 in Expand Energy on September 12, 2024 and sell it today you would earn a total of 185.00 from holding Expand Energy or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Beverage Corp vs. Expand Energy
Performance |
| Timeline |
| National Beverage Corp |
| Expand Energy |
National Beverage and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Expand Energy
The main advantage of trading using opposite National Beverage and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Expand Energy 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 Expand Energy will offset losses from the drop in Expand Energy'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 |
| Expand Energy vs. Rave Restaurant Group | Expand Energy vs. Boston Beer | Expand Energy vs. National Beverage Corp | Expand Energy vs. Cannae 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |