Correlation Between Henkel AG and Natura Co
Can any of the company-specific risk be diversified away by investing in both Henkel AG and Natura Co 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 Henkel AG and Natura Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henkel AG Co and Natura Co Holding, you can compare the effects of market volatilities on Henkel AG and Natura Co 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 Henkel AG with a short position of Natura Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henkel AG and Natura Co.
Diversification Opportunities for Henkel AG and Natura Co
Very weak diversification
The 3 months correlation between Henkel and Natura is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Henkel AG Co and Natura Co Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natura Co Holding and Henkel AG 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 Henkel AG Co are associated (or correlated) with Natura Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natura Co Holding has no effect on the direction of Henkel AG i.e., Henkel AG and Natura Co go up and down completely randomly.
Pair Corralation between Henkel AG and Natura Co
If you would invest 6,671 in Henkel AG Co on August 24, 2024 and sell it today you would earn a total of 468.00 from holding Henkel AG Co or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.65% |
| Values | Daily Returns |
Henkel AG Co vs. Natura Co Holding
Performance |
| Timeline |
| Henkel AG |
| Natura Co Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Henkel AG and Natura Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henkel AG and Natura Co
The main advantage of trading using opposite Henkel AG and Natura Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henkel AG position performs unexpectedly, Natura Co 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 Natura Co will offset losses from the drop in Natura Co's long position.| Henkel AG vs. LOral SA | Henkel AG vs. LOreal Co ADR | Henkel AG vs. Unilever PLC ADR | Henkel AG vs. Kimberly Clark |
| Natura Co vs. Mannatech Incorporated | Natura Co vs. Edgewell Personal Care | Natura Co vs. Inter Parfums | Natura Co vs. Nu Skin Enterprises |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |