Correlation Between National Beverage and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both National Beverage and Sable Offshore 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 Sable Offshore 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 Sable Offshore Corp, you can compare the effects of market volatilities on National Beverage and Sable Offshore 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 Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Sable Offshore.
Diversification Opportunities for National Beverage and Sable Offshore
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Sable is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of National Beverage i.e., National Beverage and Sable Offshore go up and down completely randomly.
Pair Corralation between National Beverage and Sable Offshore
Given the investment horizon of 90 days National Beverage Corp is expected to under-perform the Sable Offshore. But the stock apears to be less risky and, when comparing its historical volatility, National Beverage Corp is 3.43 times less risky than Sable Offshore. The stock trades about -0.1 of its potential returns per unit of risk. The Sable Offshore Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,491 in Sable Offshore Corp on November 4, 2024 and sell it today you would earn a total of 2.00 from holding Sable Offshore Corp or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Beverage Corp vs. Sable Offshore Corp
Performance |
| Timeline |
| National Beverage Corp |
| Sable Offshore Corp |
National Beverage and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Sable Offshore
The main advantage of trading using opposite National Beverage and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore'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 |
| Sable Offshore vs. Coupang LLC | Sable Offshore vs. MYT Netherlands Parent | Sable Offshore vs. Old Dominion Freight | Sable Offshore vs. Sphere Entertainment Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |