Correlation Between National Beverage and 389375AL0

Can any of the company-specific risk be diversified away by investing in both National Beverage and 389375AL0 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 389375AL0 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 GRAY TELEVISION INC, you can compare the effects of market volatilities on National Beverage and 389375AL0 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 389375AL0. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and 389375AL0.

Diversification Opportunities for National Beverage and 389375AL0

-0.24

Correlation Coefficient

National Beverage  389375AL0

Very good diversification

The 3 months correlation between National and 389375AL0 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and GRAY TELEVISION INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRAY TELEVISION INC 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 389375AL0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRAY TELEVISION INC has no effect on the direction of National Beverage i.e., National Beverage and 389375AL0 go up and down completely randomly.

Pair Corralation between National Beverage and 389375AL0

Given the investment horizon of 90 days National Beverage Corp is expected to generate 0.93 times more return on investment than 389375AL0. However, National Beverage Corp is 1.07 times less risky than 389375AL0. It trades about -0.01 of its potential returns per unit of risk. GRAY TELEVISION INC is currently generating about -0.01 per unit of risk. If you would invest  4,778  in National Beverage Corp on December 4, 2024 and sell it today you would lose (712.50) from holding National Beverage Corp or give up 14.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.77%
Values	Daily Returns

National Beverage Corp  vs.  GRAY TELEVISION INC

National Beverage Corp

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

GRAY TELEVISION INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRAY TELEVISION INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for GRAY TELEVISION INC investors.

Pair Trading with National Beverage and 389375AL0

The main advantage of trading using opposite National Beverage and 389375AL0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, 389375AL0 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 389375AL0 will offset losses from the drop in 389375AL0's long position.

The idea behind National Beverage Corp and GRAY TELEVISION INC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.