Correlation Between National Vision and Julius Baer

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

Diversification Opportunities for National Vision and Julius Baer

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between National and Julius is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe 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 Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Gruppe has no effect on the direction of National Vision i.e., National Vision and Julius Baer go up and down completely randomly.

Pair Corralation between National Vision and Julius Baer

Considering the 90-day investment horizon National Vision Holdings is expected to under-perform the Julius Baer. In addition to that, National Vision is 1.1 times more volatile than Julius Baer Gruppe. It trades about -0.01 of its total potential returns per unit of risk. Julius Baer Gruppe is currently generating about -0.01 per unit of volatility. If you would invest  6,621  in Julius Baer Gruppe on August 31, 2022 and sell it today you would lose (949.00)  from holding Julius Baer Gruppe or give up 14.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

National Vision Holdings  vs.  Julius Baer Gruppe

 Performance (%) 
       Timeline  
National Vision Holdings 
National Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in National Vision Holdings are ranked lower than 8 (%) 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

Julius Baer Gruppe 
Julius Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Julius Baer exhibited solid returns over the last few months and may actually be approaching a breakup point.

Julius Price Channel

National Vision and Julius Baer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National Vision and Julius Baer

The main advantage of trading using opposite National Vision and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.
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The idea behind National Vision Holdings and Julius Baer Gruppe 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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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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