Correlation Between National Beverage and Jayud Global

Can any of the company-specific risk be diversified away by investing in both National Beverage and Jayud Global 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 Jayud Global 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 Jayud Global Logistics, you can compare the effects of market volatilities on National Beverage and Jayud Global 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 Jayud Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Jayud Global.

Diversification Opportunities for National Beverage and Jayud Global

-0.51

Correlation Coefficient

National Beverage  Jayud Global

Excellent diversification

The 3 months correlation between National and Jayud is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics 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 Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of National Beverage i.e., National Beverage and Jayud Global go up and down completely randomly.

Pair Corralation between National Beverage and Jayud Global

Given the investment horizon of 90 days National Beverage is expected to generate 10.13 times less return on investment than Jayud Global. But when comparing it to its historical volatility, National Beverage Corp is 5.1 times less risky than Jayud Global. It trades about 0.02 of its potential returns per unit of risk. Jayud Global Logistics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  400.00  in Jayud Global Logistics on October 9, 2024 and sell it today you would lose (157.00) from holding Jayud Global Logistics or give up 39.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	87.27%
Values	Daily Returns

National Beverage Corp  vs.  Jayud Global Logistics

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.

Jayud Global Logistics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Beverage and Jayud Global

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

The idea behind National Beverage Corp and Jayud Global Logistics 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.