Correlation Between National Beverage and SOUTHERN
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By analyzing existing cross correlation between National Beverage Corp and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on National Beverage and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and SOUTHERN.
Diversification Opportunities for National Beverage and SOUTHERN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and SOUTHERN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of National Beverage i.e., National Beverage and SOUTHERN go up and down completely randomly.
Pair Corralation between National Beverage and SOUTHERN
Given the investment horizon of 90 days National Beverage is expected to generate 1.64 times less return on investment than SOUTHERN. In addition to that, National Beverage is 1.61 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.02 of its total potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.05 per unit of volatility. If you would invest 6,974 in SOUTHERN CALIF EDISON on September 14, 2024 and sell it today you would earn a total of 637.00 from holding SOUTHERN CALIF EDISON or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.14% |
| Values | Daily Returns |
National Beverage Corp vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| National Beverage Corp |
| SOUTHERN CALIF EDISON |
National Beverage and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and SOUTHERN
The main advantage of trading using opposite National Beverage and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper | National Beverage vs. Embotelladora Andina SA | National Beverage vs. Coca Cola European Partners |
| SOUTHERN vs. Albertsons Companies | SOUTHERN vs. Todos Medical | SOUTHERN vs. Avadel Pharmaceuticals PLC | SOUTHERN vs. National Beverage Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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