Correlation Between 00131LAF2 and National Beverage
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By analyzing existing cross correlation between AIA 39 06 APR 28 and National Beverage Corp, you can compare the effects of market volatilities on 00131LAF2 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 00131LAF2 with a short position of National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00131LAF2 and National Beverage.
Diversification Opportunities for 00131LAF2 and National Beverage
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 00131LAF2 and National is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding AIA 39 06 APR 28 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 00131LAF2 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 AIA 39 06 APR 28 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 00131LAF2 i.e., 00131LAF2 and National Beverage go up and down completely randomly.
Pair Corralation between 00131LAF2 and National Beverage
Assuming the 90 days trading horizon 00131LAF2 is expected to generate 1.62 times less return on investment than National Beverage. But when comparing it to its historical volatility, AIA 39 06 APR 28 is 4.86 times less risky than National Beverage. It trades about 0.18 of its potential returns per unit of risk. National Beverage Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,319 in National Beverage Corp on September 3, 2024 and sell it today you would earn a total of 620.00 from holding National Beverage Corp or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.7% |
| Values | Daily Returns |
AIA 39 06 APR 28 vs. National Beverage Corp
Performance |
| Timeline |
| AIA 06 APR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| National Beverage Corp |
00131LAF2 and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00131LAF2 and National Beverage
The main advantage of trading using opposite 00131LAF2 and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00131LAF2 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.| 00131LAF2 vs. First Ship Lease | 00131LAF2 vs. Mitsubishi UFJ Lease | 00131LAF2 vs. The Coca Cola | 00131LAF2 vs. Celsius Holdings |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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