Correlation Between Natural Grocers and Innovative Food
Can any of the company-specific risk be diversified away by investing in both Natural Grocers and Innovative Food 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 Natural Grocers and Innovative Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Grocers by and Innovative Food Hldg, you can compare the effects of market volatilities on Natural Grocers and Innovative Food 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 Grocers with a short position of Innovative Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and Innovative Food.
Diversification Opportunities for Natural Grocers and Innovative Food
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Natural and Innovative is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and Innovative Food Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Food Hldg and Natural Grocers 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 Grocers by are associated (or correlated) with Innovative Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Food Hldg has no effect on the direction of Natural Grocers i.e., Natural Grocers and Innovative Food go up and down completely randomly.
Pair Corralation between Natural Grocers and Innovative Food
Given the investment horizon of 90 days Natural Grocers by is expected to generate 1.68 times more return on investment than Innovative Food. However, Natural Grocers is 1.68 times more volatile than Innovative Food Hldg. It trades about 0.43 of its potential returns per unit of risk. Innovative Food Hldg is currently generating about -0.04 per unit of risk. If you would invest 2,728 in Natural Grocers by on August 31, 2024 and sell it today you would earn a total of 1,893 from holding Natural Grocers by or generate 69.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Grocers by vs. Innovative Food Hldg
Performance |
| Timeline |
| Natural Grocers by |
| Innovative Food Hldg |
Natural Grocers and Innovative Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Grocers and Innovative Food
The main advantage of trading using opposite Natural Grocers and Innovative Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers position performs unexpectedly, Innovative Food 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 Innovative Food will offset losses from the drop in Innovative Food's long position.| Natural Grocers vs. Weis Markets | Natural Grocers vs. Ingles Markets Incorporated | Natural Grocers vs. Sendas Distribuidora SA | Natural Grocers vs. Grocery Outlet Holding |
| Innovative Food vs. Organto Foods | Innovative Food vs. Colabor Group | Innovative Food vs. Bunzl plc | Innovative Food vs. Hf Foods Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |