Correlation Between National Beverage and Eva Live

Can any of the company-specific risk be diversified away by investing in both National Beverage and Eva Live 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 National Beverage and Eva Live into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between National Beverage Corp and Eva Live, you can compare the effects of market volatilities on National Beverage and Eva Live 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 National Beverage with a short position of Eva Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Eva Live.

Diversification Opportunities for National Beverage and Eva Live

-0.03

Correlation Coefficient

National Beverage  Eva Live

Good diversification

The 3 months correlation between National and Eva is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Eva Live in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eva Live and National Beverage 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 National Beverage Corp are associated (or correlated) with Eva Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eva Live has no effect on the direction of National Beverage i.e., National Beverage and Eva Live go up and down completely randomly.

Pair Corralation between National Beverage and Eva Live

Given the investment horizon of 90 days National Beverage Corp is expected to under-perform the Eva Live. But the stock apears to be less risky and, when comparing its historical volatility, National Beverage Corp is 21.64 times less risky than Eva Live. The stock trades about -0.7 of its potential returns per unit of risk. The Eva Live is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  200.00  in Eva Live on October 9, 2024 and sell it today you would lose (72.00) from holding Eva Live or give up 36.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

National Beverage Corp  vs.  Eva Live

National Beverage Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, National Beverage is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Eva Live

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eva Live are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Eva Live demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Beverage and Eva Live

The main advantage of trading using opposite National Beverage and Eva Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, Eva Live 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 Eva Live will offset losses from the drop in Eva Live's long position.

The idea behind National Beverage Corp and Eva Live pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..