Correlation Between Global and National Beverage
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By analyzing existing cross correlation between Global Payments 415 and National Beverage Corp, you can compare the effects of market volatilities on Global 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 Global with a short position of National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global and National Beverage.
Diversification Opportunities for Global and National Beverage
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and National is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Global Payments 415 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 Global 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 Global Payments 415 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 Global i.e., Global and National Beverage go up and down completely randomly.
Pair Corralation between Global and National Beverage
Assuming the 90 days trading horizon Global is expected to generate 1.23 times less return on investment than National Beverage. In addition to that, Global is 2.57 times more volatile than National Beverage Corp. It trades about 0.08 of its total potential returns per unit of risk. National Beverage Corp is currently generating about 0.24 per unit of volatility. If you would invest 4,577 in National Beverage Corp on September 2, 2024 and sell it today you would earn a total of 362.00 from holding National Beverage Corp or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Global Payments 415 vs. National Beverage Corp
Performance |
| Timeline |
| Global Payments 415 |
| National Beverage Corp |
Global and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global and National Beverage
The main advantage of trading using opposite Global and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global 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.| Global vs. Shake Shack | Global vs. Dennys Corp | Global vs. Fluent Inc | Global vs. Software Acquisition Group |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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