Correlation Between Raymond James and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Raymond James 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 Raymond James and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Naturhouse Health SA, you can compare the effects of market volatilities on Raymond James 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 Raymond James with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Naturhouse Health.
Diversification Opportunities for Raymond James and Naturhouse Health
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Raymond and Naturhouse is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and Raymond James 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 Raymond James Financial 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 Raymond James i.e., Raymond James and Naturhouse Health go up and down completely randomly.
Pair Corralation between Raymond James and Naturhouse Health
Assuming the 90 days trading horizon Raymond James Financial is expected to generate 1.43 times more return on investment than Naturhouse Health. However, Raymond James is 1.43 times more volatile than Naturhouse Health SA. It trades about 0.24 of its potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.15 per unit of risk. If you would invest 15,426 in Raymond James Financial on October 30, 2024 and sell it today you would earn a total of 1,209 from holding Raymond James Financial or generate 7.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.0% |
Values | Daily Returns |
Raymond James Financial vs. Naturhouse Health SA
Performance |
Timeline |
Raymond James Financial |
Naturhouse Health |
Raymond James and Naturhouse Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Raymond James and Naturhouse Health
The main advantage of trading using opposite Raymond James and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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.Raymond James vs. Europa Metals | Raymond James vs. Orient Telecoms | Raymond James vs. Golden Metal Resources | Raymond James vs. Sovereign Metals |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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