Correlation Between Alphatec Holdings and National Vision

Can any of the company-specific risk be diversified away by investing in both Alphatec Holdings 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 Alphatec Holdings and National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alphatec Holdings and National Vision Holdings, you can compare the effects of market volatilities on Alphatec Holdings 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 Alphatec Holdings with a short position of National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphatec Holdings and National Vision.

Diversification Opportunities for Alphatec Holdings and National Vision

-0.2

Correlation Coefficient

Alphatec Holdings  National Vision

Good diversification

The 3 months correlation between Alphatec and National is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings 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 Alphatec Holdings 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 Alphatec Holdings 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 Alphatec Holdings i.e., Alphatec Holdings and National Vision go up and down completely randomly.

Pair Corralation between Alphatec Holdings and National Vision

Given the investment horizon of 90 days Alphatec Holdings is expected to generate 1.73 times more return on investment than National Vision. However, Alphatec Holdings is 1.73 times more volatile than National Vision Holdings. It trades about 0.08 of its potential returns per unit of risk. National Vision Holdings is currently generating about 0.03 per unit of risk. If you would invest  1,091  in Alphatec Holdings on July 14, 2025 and sell it today you would earn a total of  223.00  from holding Alphatec Holdings or generate 20.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alphatec Holdings  vs.  National Vision Holdings

Alphatec Holdings

Risk-Adjusted Performance

Mild

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

National Vision Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Vision Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, National Vision is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Alphatec Holdings and National Vision

The main advantage of trading using opposite Alphatec Holdings and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphatec Holdings 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.

The idea behind Alphatec Holdings 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.