Correlation Between Alaska Air and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Alaska Air and Naturhouse Health 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 Alaska Air and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Naturhouse Health SA, you can compare the effects of market volatilities on Alaska Air and Naturhouse Health 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 Alaska Air with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Naturhouse Health.
Diversification Opportunities for Alaska Air and Naturhouse Health
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alaska and Naturhouse is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and Alaska Air 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 Alaska Air Group are associated (or correlated) with Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of Alaska Air i.e., Alaska Air and Naturhouse Health go up and down completely randomly.
Pair Corralation between Alaska Air and Naturhouse Health
Assuming the 90 days trading horizon Alaska Air Group is expected to generate 1.07 times more return on investment than Naturhouse Health. However, Alaska Air is 1.07 times more volatile than Naturhouse Health SA. It trades about 0.12 of its potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.03 per unit of risk. If you would invest 4,190 in Alaska Air Group on October 25, 2024 and sell it today you would earn a total of 2,572 from holding Alaska Air Group or generate 61.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.17% |
| Values | Daily Returns |
Alaska Air Group vs. Naturhouse Health SA
Performance |
| Timeline |
| Alaska Air Group |
| Naturhouse Health |
Alaska Air and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Naturhouse Health
The main advantage of trading using opposite Alaska Air and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air position performs unexpectedly, Naturhouse Health 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| Alaska Air vs. Toyota Motor Corp | Alaska Air vs. SoftBank Group Corp | Alaska Air vs. OTP Bank Nyrt | Alaska Air vs. ONEOK Inc |
| Naturhouse Health vs. Toyota Motor Corp | Naturhouse Health vs. SoftBank Group Corp | Naturhouse Health vs. OTP Bank Nyrt | Naturhouse Health vs. ONEOK Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |