Correlation Between Just Eat and Natural Health
Can any of the company-specific risk be diversified away by investing in both Just Eat 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 Just Eat and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Eat Takeaway and Natural Health Trend, you can compare the effects of market volatilities on Just Eat 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 Just Eat with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Eat and Natural Health.
Diversification Opportunities for Just Eat and Natural Health
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Just and Natural is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway 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 Just Eat 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 Just Eat Takeaway 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 Just Eat i.e., Just Eat and Natural Health go up and down completely randomly.
Pair Corralation between Just Eat and Natural Health
If you would invest 448.00 in Natural Health Trend on August 31, 2024 and sell it today you would earn a total of 96.00 from holding Natural Health Trend or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Just Eat Takeaway vs. Natural Health Trend
Performance |
| Timeline |
| Just Eat Takeaway |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Natural Health Trend |
Just Eat and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Just Eat and Natural Health
The main advantage of trading using opposite Just Eat and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Eat 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.The idea behind Just Eat Takeaway and Natural Health Trend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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