Correlation Between National Beverage and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both National Beverage and GameSquare Holdings 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 Beverage and GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and GameSquare Holdings, you can compare the effects of market volatilities on National Beverage and GameSquare Holdings 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 Beverage with a short position of GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and GameSquare Holdings.
Diversification Opportunities for National Beverage and GameSquare Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and GameSquare is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings and National Beverage 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 Beverage Corp are associated (or correlated) with GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of National Beverage i.e., National Beverage and GameSquare Holdings go up and down completely randomly.
Pair Corralation between National Beverage and GameSquare Holdings
Given the investment horizon of 90 days National Beverage Corp is expected to under-perform the GameSquare Holdings. But the stock apears to be less risky and, when comparing its historical volatility, National Beverage Corp is 5.47 times less risky than GameSquare Holdings. The stock trades about -0.14 of its potential returns per unit of risk. The GameSquare Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 95.00 in GameSquare Holdings on September 6, 2025 and sell it today you would lose (46.02) from holding GameSquare Holdings or give up 48.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Beverage Corp vs. GameSquare Holdings
Performance |
| Timeline |
| National Beverage Corp |
| GameSquare Holdings |
National Beverage and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and GameSquare Holdings
The main advantage of trading using opposite National Beverage and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| National Beverage vs. Smithfield Foods, Common | National Beverage vs. NH Foods Ltd | National Beverage vs. MTY Food Group | National Beverage vs. Network Media Group |
| GameSquare Holdings vs. TRI Pointe Homes | GameSquare Holdings vs. Nobility Homes | GameSquare Holdings vs. TCL Electronics Holdings | GameSquare Holdings vs. Hana Microelectronics Public |
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 the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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