Correlation Between Stevanato Group and National Beverage
Can any of the company-specific risk be diversified away by investing in both Stevanato Group and National Beverage 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 Stevanato Group and National Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and National Beverage Corp, you can compare the effects of market volatilities on Stevanato Group and National Beverage 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 Stevanato Group with a short position of National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and National Beverage.
Diversification Opportunities for Stevanato Group and National Beverage
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stevanato and National is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp and Stevanato Group 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 Stevanato Group SpA are associated (or correlated) with National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Stevanato Group i.e., Stevanato Group and National Beverage go up and down completely randomly.
Pair Corralation between Stevanato Group and National Beverage
Given the investment horizon of 90 days Stevanato Group SpA is expected to generate 1.83 times more return on investment than National Beverage. However, Stevanato Group is 1.83 times more volatile than National Beverage Corp. It trades about 0.0 of its potential returns per unit of risk. National Beverage Corp is currently generating about -0.01 per unit of risk. If you would invest 2,560 in Stevanato Group SpA on November 27, 2024 and sell it today you would lose (448.00) from holding Stevanato Group SpA or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. National Beverage Corp
Performance |
| Timeline |
| Stevanato Group SpA |
| National Beverage Corp |
Stevanato Group and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and National Beverage
The main advantage of trading using opposite Stevanato Group and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group position performs unexpectedly, National Beverage 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 Beverage will offset losses from the drop in National Beverage's long position.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |