Correlation Between National Beverage and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between National Beverage Corp and GENERAL ELEC CAP, you can compare the effects of market volatilities on National Beverage and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and GENERAL.
Diversification Opportunities for National Beverage and GENERAL
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and GENERAL is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of National Beverage i.e., National Beverage and GENERAL go up and down completely randomly.
Pair Corralation between National Beverage and GENERAL
Given the investment horizon of 90 days National Beverage Corp is expected to generate 0.19 times more return on investment than GENERAL. However, National Beverage Corp is 5.32 times less risky than GENERAL. It trades about 0.19 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.07 per unit of risk. If you would invest 4,486 in National Beverage Corp on September 5, 2024 and sell it today you would earn a total of 466.00 from holding National Beverage Corp or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.48% |
| Values | Daily Returns |
National Beverage Corp vs. GENERAL ELEC CAP
Performance |
| Timeline |
| National Beverage Corp |
| GENERAL ELEC CAP |
National Beverage and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and GENERAL
The main advantage of trading using opposite National Beverage and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |