Correlation Between Occidental and National Beverage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Occidental Petroleum 75 and National Beverage Corp, you can compare the effects of market volatilities on Occidental 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 Occidental with a short position of National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental and National Beverage.
Diversification Opportunities for Occidental and National Beverage
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Occidental and National is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum 75 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 Occidental 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 Occidental Petroleum 75 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 Occidental i.e., Occidental and National Beverage go up and down completely randomly.
Pair Corralation between Occidental and National Beverage
Assuming the 90 days trading horizon Occidental Petroleum 75 is expected to under-perform the National Beverage. But the bond apears to be less risky and, when comparing its historical volatility, Occidental Petroleum 75 is 4.48 times less risky than National Beverage. The bond trades about -0.03 of its potential returns per unit of risk. The 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 Against |
| Strength | Weak |
| Accuracy | 98.63% |
| Values | Daily Returns |
Occidental Petroleum 75 vs. National Beverage Corp
Performance |
| Timeline |
| Occidental Petroleum |
| National Beverage Corp |
Occidental and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental and National Beverage
The main advantage of trading using opposite Occidental and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental 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.| Occidental vs. National Beverage Corp | Occidental vs. Fernhill Beverage | Occidental vs. Fevertree Drinks Plc | Occidental vs. Suntory Beverage Food |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |