Correlation Between Flanigans Enterprises and National Vision

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Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and National Vision 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 Flanigans Enterprises and National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and National Vision Holdings, you can compare the effects of market volatilities on Flanigans Enterprises and National Vision 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 Flanigans Enterprises with a short position of National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and National Vision.

Diversification Opportunities for Flanigans Enterprises and National Vision

-0.47
  Correlation Coefficient

Very good diversification

The 3 months correlation between Flanigans and National is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings and Flanigans Enterprises 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 Flanigans Enterprises are associated (or correlated) with National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and National Vision go up and down completely randomly.

Pair Corralation between Flanigans Enterprises and National Vision

Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 0.81 times more return on investment than National Vision. However, Flanigans Enterprises is 1.24 times less risky than National Vision. It trades about -0.01 of its potential returns per unit of risk. National Vision Holdings is currently generating about -0.06 per unit of risk. If you would invest  3,040  in Flanigans Enterprises on July 5, 2022 and sell it today you would lose (471.00)  from holding Flanigans Enterprises or give up 15.49% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Flanigans Enterprises  vs.  National Vision Holdings

 Performance (%) 
       Timeline  
Flanigans Enterprises 
Flanigans Performance
0 of 100
Over the last 90 days Flanigans Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's fundamental indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Flanigans Price Channel

National Vision Holdings 
National Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in National Vision Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, National Vision exhibited solid returns over the last few months and may actually be approaching a breakup point.

National Price Channel

Flanigans Enterprises and National Vision Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Flanigans Enterprises and National Vision

The main advantage of trading using opposite Flanigans Enterprises and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, National Vision 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 Vision will offset losses from the drop in National Vision's long position.
Flanigans Enterprises vs. Amazon Inc
The idea behind Flanigans Enterprises and National Vision Holdings 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.
National Vision vs. Best Buy Company
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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