Correlation Between National Vision and Academy Sports

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

Diversification Opportunities for National Vision and Academy Sports

0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between National and Academy is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Academy Sports And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports And and National Vision 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 Vision Holdings are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports And has no effect on the direction of National Vision i.e., National Vision and Academy Sports go up and down completely randomly.

Pair Corralation between National Vision and Academy Sports

Considering the 90-day investment horizon National Vision Holdings is expected to under-perform the Academy Sports. In addition to that, National Vision is 1.19 times more volatile than Academy Sports And. It trades about -0.07 of its total potential returns per unit of risk. Academy Sports And is currently generating about 0.02 per unit of volatility. If you would invest  3,870  in Academy Sports And on March 29, 2022 and sell it today you would lose (40.00)  from holding Academy Sports And or give up 1.03% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy97.62%
ValuesDaily Returns

National Vision Holdings  vs.  Academy Sports And

 Performance (%) 
      Timeline 
National Vision Holdings 
National Performance
0 of 100
Over the last 90 days National Vision Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

National Price Channel

Academy Sports And 
Academy Performance
0 of 100
Over the last 90 days Academy Sports And has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Academy Sports is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0083
Payout Ratio
0.0202
Forward Annual Dividend Rate
0.3
Dividend Date
2022-07-14
Ex Dividend Date
2022-06-15

Academy Price Channel

National Vision and Academy Sports Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with National Vision and Academy Sports

The main advantage of trading using opposite National Vision and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.
The idea behind National Vision Holdings and Academy Sports And 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.

Academy Sports And

Pair trading matchups for Academy Sports

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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