Correlation Between GAMING FAC and Natural Health
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and Natural 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 GAMING FAC and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Natural Health Trends, you can compare the effects of market volatilities on GAMING FAC and Natural 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 GAMING FAC with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Natural Health.
Diversification Opportunities for GAMING FAC and Natural Health
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAMING and Natural is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of GAMING FAC i.e., GAMING FAC and Natural Health go up and down completely randomly.
Pair Corralation between GAMING FAC and Natural Health
Assuming the 90 days horizon GAMING FAC SA is expected to generate 1.24 times more return on investment than Natural Health. However, GAMING FAC is 1.24 times more volatile than Natural Health Trends. It trades about 0.04 of its potential returns per unit of risk. Natural Health Trends is currently generating about 0.04 per unit of risk. If you would invest 126.00 in GAMING FAC SA on October 25, 2024 and sell it today you would earn a total of 50.00 from holding GAMING FAC SA or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GAMING FAC SA vs. Natural Health Trends
Performance |
| Timeline |
| GAMING FAC SA |
| Natural Health Trends |
GAMING FAC and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and Natural Health
The main advantage of trading using opposite GAMING FAC and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, Natural 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 Natural Health will offset losses from the drop in Natural Health's long position.| GAMING FAC vs. RYANAIR HLDGS ADR | GAMING FAC vs. Scottish Mortgage Investment | GAMING FAC vs. HK Electric Investments | GAMING FAC vs. Fair Isaac Corp |
| Natural Health vs. Motorcar Parts of | Natural Health vs. SIEM OFFSHORE NEW | Natural Health vs. COMPUTERSHARE | Natural Health vs. MACOM Technology Solutions |
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.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |