Correlation Between Hawkins and National Vision
Can any of the company-specific risk be diversified away by investing in both Hawkins and National Vision 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 Hawkins and National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and National Vision Holdings, you can compare the effects of market volatilities on Hawkins and National Vision 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 Hawkins with a short position of National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and National Vision.
Diversification Opportunities for Hawkins and National Vision
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hawkins and National is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings and Hawkins 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 Hawkins are associated (or correlated) with National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of Hawkins i.e., Hawkins and National Vision go up and down completely randomly.
Pair Corralation between Hawkins and National Vision
Given the investment horizon of 90 days Hawkins is expected to under-perform the National Vision. In addition to that, Hawkins is 1.52 times more volatile than National Vision Holdings. It trades about -0.22 of its total potential returns per unit of risk. National Vision Holdings is currently generating about 0.13 per unit of volatility. If you would invest 1,088 in National Vision Holdings on November 4, 2024 and sell it today you would earn a total of 52.00 from holding National Vision Holdings or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. National Vision Holdings
Performance |
| Timeline |
| Hawkins |
| National Vision Holdings |
Hawkins and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and National Vision
The main advantage of trading using opposite Hawkins and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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