Correlation Between Naturhouse Health and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Naturhouse Health and Liontrust Asset 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 Naturhouse Health and Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naturhouse Health SA and Liontrust Asset Management, you can compare the effects of market volatilities on Naturhouse Health and Liontrust Asset 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 Naturhouse Health with a short position of Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturhouse Health and Liontrust Asset.
Diversification Opportunities for Naturhouse Health and Liontrust Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naturhouse and Liontrust is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naturhouse Health SA and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana and Naturhouse Health 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 Naturhouse Health SA are associated (or correlated) with Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Naturhouse Health i.e., Naturhouse Health and Liontrust Asset go up and down completely randomly.
Pair Corralation between Naturhouse Health and Liontrust Asset
Assuming the 90 days trading horizon Naturhouse Health SA is expected to under-perform the Liontrust Asset. But the stock apears to be less risky and, when comparing its historical volatility, Naturhouse Health SA is 3.89 times less risky than Liontrust Asset. The stock trades about -0.08 of its potential returns per unit of risk. The Liontrust Asset Management is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 39,675 in Liontrust Asset Management on September 21, 2024 and sell it today you would earn a total of 5,925 from holding Liontrust Asset Management or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naturhouse Health SA vs. Liontrust Asset Management
Performance |
| Timeline |
| Naturhouse Health |
| Liontrust Asset Mana |
Naturhouse Health and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturhouse Health and Liontrust Asset
The main advantage of trading using opposite Naturhouse Health and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturhouse Health position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Naturhouse Health vs. Samsung Electronics Co | Naturhouse Health vs. Samsung Electronics Co | Naturhouse Health vs. Hyundai Motor | Naturhouse Health vs. Reliance Industries Ltd |
| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. CATLIN GROUP | Liontrust Asset vs. Tamburi Investment Partners | Liontrust Asset vs. Magnora ASA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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