Correlation Between Liontrust Asset and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset and Naturhouse 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 Liontrust Asset and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and Naturhouse Health SA, you can compare the effects of market volatilities on Liontrust Asset and Naturhouse 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 Liontrust Asset with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Naturhouse Health.
Diversification Opportunities for Liontrust Asset and Naturhouse Health
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liontrust and Naturhouse is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and Liontrust Asset 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 Liontrust Asset Management are associated (or correlated) with Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of Liontrust Asset i.e., Liontrust Asset and Naturhouse Health go up and down completely randomly.
Pair Corralation between Liontrust Asset and Naturhouse Health
Assuming the 90 days trading horizon Liontrust Asset Management is expected to under-perform the Naturhouse Health. In addition to that, Liontrust Asset is 1.54 times more volatile than Naturhouse Health SA. It trades about -0.05 of its total potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.06 per unit of volatility. If you would invest 149.00 in Naturhouse Health SA on December 8, 2024 and sell it today you would earn a total of 27.00 from holding Naturhouse Health SA or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.44% |
| Values | Daily Returns |
Liontrust Asset Management vs. Naturhouse Health SA
Performance |
| Timeline |
| Liontrust Asset Mana |
| Naturhouse Health |
Liontrust Asset and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liontrust Asset and Naturhouse Health
The main advantage of trading using opposite Liontrust Asset and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset position performs unexpectedly, Naturhouse 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| Liontrust Asset vs. Everyman Media Group | Liontrust Asset vs. Intermediate Capital Group | Liontrust Asset vs. Zinc Media Group | Liontrust Asset vs. Ubisoft Entertainment |
| Naturhouse Health vs. GoldMining | Naturhouse Health vs. AMG Advanced Metallurgical | Naturhouse Health vs. Eastinco Mining Exploration | Naturhouse Health vs. Endeavour Mining Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |