Correlation Between Natural Alternatives and AMERICAN
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By analyzing existing cross correlation between Natural Alternatives International and AMERICAN WTR CAP, you can compare the effects of market volatilities on Natural Alternatives and AMERICAN 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 Natural Alternatives with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Alternatives and AMERICAN.
Diversification Opportunities for Natural Alternatives and AMERICAN
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natural and AMERICAN is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Natural Alternatives Internati and AMERICAN WTR CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN WTR CAP and Natural Alternatives 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 Natural Alternatives International are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN WTR CAP has no effect on the direction of Natural Alternatives i.e., Natural Alternatives and AMERICAN go up and down completely randomly.
Pair Corralation between Natural Alternatives and AMERICAN
Given the investment horizon of 90 days Natural Alternatives International is expected to under-perform the AMERICAN. In addition to that, Natural Alternatives is 2.67 times more volatile than AMERICAN WTR CAP. It trades about -0.05 of its total potential returns per unit of risk. AMERICAN WTR CAP is currently generating about 0.09 per unit of volatility. If you would invest 8,331 in AMERICAN WTR CAP on September 2, 2024 and sell it today you would earn a total of 700.00 from holding AMERICAN WTR CAP or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Natural Alternatives Internati vs. AMERICAN WTR CAP
Performance |
| Timeline |
| Natural Alternatives |
| AMERICAN WTR CAP |
Natural Alternatives and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Alternatives and AMERICAN
The main advantage of trading using opposite Natural Alternatives and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Alternatives position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Natural Alternatives vs. Seneca Foods Corp | Natural Alternatives vs. Central Garden Pet | Natural Alternatives vs. Central Garden Pet | Natural Alternatives vs. Lifeway Foods |
| AMERICAN vs. Oatly Group AB | AMERICAN vs. Constellation Brands Class | AMERICAN vs. Cardinal Health | AMERICAN vs. Willamette Valley Vineyards |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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