Correlation Between Delivery Hero and Natural Health
Can any of the company-specific risk be diversified away by investing in both Delivery Hero 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 Delivery Hero and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delivery Hero SE and Natural Health Trend, you can compare the effects of market volatilities on Delivery Hero 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 Delivery Hero with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delivery Hero and Natural Health.
Diversification Opportunities for Delivery Hero and Natural Health
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delivery and Natural is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Delivery Hero SE and Natural Health Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trend and Delivery Hero 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 Delivery Hero SE 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 Trend has no effect on the direction of Delivery Hero i.e., Delivery Hero and Natural Health go up and down completely randomly.
Pair Corralation between Delivery Hero and Natural Health
Assuming the 90 days horizon Delivery Hero SE is expected to under-perform the Natural Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Delivery Hero SE is 1.0 times less risky than Natural Health. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Natural Health Trend is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 582.00 in Natural Health Trend on August 28, 2024 and sell it today you would lose (33.00) from holding Natural Health Trend or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Delivery Hero SE vs. Natural Health Trend
Performance |
| Timeline |
| Delivery Hero SE |
| Natural Health Trend |
Delivery Hero and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delivery Hero and Natural Health
The main advantage of trading using opposite Delivery Hero and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delivery Hero 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.| Delivery Hero vs. 1StdibsCom | Delivery Hero vs. Natural Health Trend | Delivery Hero vs. Hour Loop | Delivery Hero vs. Liquidity Services |
| Natural Health vs. Liquidity Services | Natural Health vs. Hour Loop | Natural Health vs. Qurate Retail Series | Natural Health vs. Emerge Commerce |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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