Correlation Between Natural Alternatives and Kaiser
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By analyzing existing cross correlation between Natural Alternatives International and Kaiser Permanente, you can compare the effects of market volatilities on Natural Alternatives and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Alternatives and Kaiser.
Diversification Opportunities for Natural Alternatives and Kaiser
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natural and Kaiser is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Natural Alternatives Internati and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Natural Alternatives i.e., Natural Alternatives and Kaiser go up and down completely randomly.
Pair Corralation between Natural Alternatives and Kaiser
Given the investment horizon of 90 days Natural Alternatives International is expected to under-perform the Kaiser. In addition to that, Natural Alternatives is 3.66 times more volatile than Kaiser Permanente. It trades about -0.06 of its total potential returns per unit of risk. Kaiser Permanente is currently generating about -0.11 per unit of volatility. If you would invest 7,132 in Kaiser Permanente on September 3, 2024 and sell it today you would lose (545.00) from holding Kaiser Permanente or give up 7.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.06% |
| Values | Daily Returns |
Natural Alternatives Internati vs. Kaiser Permanente
Performance |
| Timeline |
| Natural Alternatives |
| Kaiser Permanente |
Natural Alternatives and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Alternatives and Kaiser
The main advantage of trading using opposite Natural Alternatives and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Alternatives position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser's long position.| Natural Alternatives vs. FitLife Brands, Common | Natural Alternatives vs. Lifeway Foods | Natural Alternatives vs. Else Nutrition Holdings | Natural Alternatives vs. Central Garden Pet |
| Kaiser vs. Zijin Mining Group | Kaiser vs. Western Sierra Mining | Kaiser vs. Natural Alternatives International | Kaiser vs. Harmony Gold Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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