Correlation Between Blue Star and Natures Sunshine
Can any of the company-specific risk be diversified away by investing in both Blue Star and Natures Sunshine 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 Blue Star and Natures Sunshine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Foods and Natures Sunshine Products, you can compare the effects of market volatilities on Blue Star and Natures Sunshine 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 Blue Star with a short position of Natures Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Natures Sunshine.
Diversification Opportunities for Blue Star and Natures Sunshine
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blue and Natures is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Foods and Natures Sunshine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Sunshine Products and Blue Star 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 Blue Star Foods are associated (or correlated) with Natures Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Sunshine Products has no effect on the direction of Blue Star i.e., Blue Star and Natures Sunshine go up and down completely randomly.
Pair Corralation between Blue Star and Natures Sunshine
If you would invest 15.00 in Blue Star Foods on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Blue Star Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Blue Star Foods vs. Natures Sunshine Products
Performance |
| Timeline |
| Blue Star Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Natures Sunshine Products |
Blue Star and Natures Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Natures Sunshine
The main advantage of trading using opposite Blue Star and Natures Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Natures Sunshine 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 Natures Sunshine will offset losses from the drop in Natures Sunshine's long position.| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
| Natures Sunshine vs. Seneca Foods Corp | Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. Associated British Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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