Correlation Between Grand Havana and Natures Sunshine
Can any of the company-specific risk be diversified away by investing in both Grand Havana 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 Grand Havana and Natures Sunshine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Havana and Natures Sunshine Products, you can compare the effects of market volatilities on Grand Havana 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 Grand Havana with a short position of Natures Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Havana and Natures Sunshine.
Diversification Opportunities for Grand Havana and Natures Sunshine
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grand and Natures is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grand Havana 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 Grand Havana 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 Grand Havana 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 Grand Havana i.e., Grand Havana and Natures Sunshine go up and down completely randomly.
Pair Corralation between Grand Havana and Natures Sunshine
Given the investment horizon of 90 days Grand Havana is expected to generate 4.99 times more return on investment than Natures Sunshine. However, Grand Havana is 4.99 times more volatile than Natures Sunshine Products. It trades about 0.13 of its potential returns per unit of risk. Natures Sunshine Products is currently generating about -0.08 per unit of risk. If you would invest 0.05 in Grand Havana on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Grand Havana or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grand Havana vs. Natures Sunshine Products
Performance |
| Timeline |
| Grand Havana |
| Natures Sunshine Products |
Grand Havana and Natures Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Havana and Natures Sunshine
The main advantage of trading using opposite Grand Havana and Natures Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Havana 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.| Grand Havana vs. Right On Brands | Grand Havana vs. BioAdaptives | Grand Havana vs. Yuenglings Ice Cream | Grand Havana vs. Bit Origin |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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