Correlation Between National Beverage and KROGER
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By analyzing existing cross correlation between National Beverage Corp and KROGER 37 percent, you can compare the effects of market volatilities on National Beverage and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and KROGER.
Diversification Opportunities for National Beverage and KROGER
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and KROGER is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and KROGER 37 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 37 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 37 percent has no effect on the direction of National Beverage i.e., National Beverage and KROGER go up and down completely randomly.
Pair Corralation between National Beverage and KROGER
Given the investment horizon of 90 days National Beverage Corp is expected to generate 3.91 times more return on investment than KROGER. However, National Beverage is 3.91 times more volatile than KROGER 37 percent. It trades about 0.01 of its potential returns per unit of risk. KROGER 37 percent is currently generating about -0.01 per unit of risk. If you would invest 4,823 in National Beverage Corp on September 3, 2024 and sell it today you would earn a total of 116.00 from holding National Beverage Corp or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
National Beverage Corp vs. KROGER 37 percent
Performance |
| Timeline |
| National Beverage Corp |
| KROGER 37 percent |
National Beverage and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and KROGER
The main advantage of trading using opposite National Beverage and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Sligro Food Group | KROGER vs. Fevertree Drinks Plc | KROGER vs. National Beverage Corp | KROGER vs. Fomento Economico Mexicano |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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