Correlation Between MarineMax and National Vision

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

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

Diversification Opportunities for MarineMax and National Vision

0.34

Correlation Coefficient

MarineMax  National Vision

Weak diversification

The 3 months correlation between MarineMax and National is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax 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 MarineMax 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 MarineMax 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 MarineMax i.e., MarineMax and National Vision go up and down completely randomly.

Pair Corralation between MarineMax and National Vision

Considering the 90-day investment horizon MarineMax is expected to under-perform the National Vision. In addition to that, MarineMax is 1.27 times more volatile than National Vision Holdings. It trades about -0.08 of its total potential returns per unit of risk. National Vision Holdings is currently generating about 0.23 per unit of volatility. If you would invest  987.00  in National Vision Holdings on August 14, 2024 and sell it today you would earn a total of  142.00  from holding National Vision Holdings or generate 14.39% return on investment over 90 days.

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

MarineMax  vs.  National Vision Holdings

MarineMax

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MarineMax are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, MarineMax displayed solid returns over the last few months and may actually be approaching a breakup point.

National Vision Holdings

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in National Vision Holdings are ranked lower than 7 (%) 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.

Pair Trading with MarineMax and National Vision

The main advantage of trading using opposite MarineMax and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax 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 MarineMax 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.