Correlation Between National Vision and Array Digital

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

Diversification Opportunities for National Vision and Array Digital

0.46

Correlation Coefficient

National Vision  Array Digital

Very weak diversification

The 3 months correlation between National and Array is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and Array Digital Infrastructure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Digital Infras 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 Array Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Digital Infras has no effect on the direction of National Vision i.e., National Vision and Array Digital go up and down completely randomly.

Pair Corralation between National Vision and Array Digital

Considering the 90-day investment horizon National Vision Holdings is expected to generate 1.24 times more return on investment than Array Digital. However, National Vision is 1.24 times more volatile than Array Digital Infrastructure,. It trades about 0.19 of its potential returns per unit of risk. Array Digital Infrastructure, is currently generating about 0.19 per unit of risk. If you would invest  1,924  in National Vision Holdings on May 28, 2025 and sell it today you would earn a total of  559.00  from holding National Vision Holdings or generate 29.05% return on investment over 90 days.

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

National Vision Holdings  vs.  Array Digital Infrastructure,

National Vision Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in National Vision Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, National Vision exhibited solid returns over the last few months and may actually be approaching a breakup point.

Array Digital Infras

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Array Digital Infrastructure, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Vision and Array Digital

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

The idea behind National Vision Holdings and Array Digital Infrastructure, 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.