Correlation Between Natural Grocers and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Natural Grocers and Leafly Holdings 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 Leafly Holdings 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 Leafly Holdings, you can compare the effects of market volatilities on Natural Grocers and Leafly Holdings 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 Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and Leafly Holdings.
Diversification Opportunities for Natural Grocers and Leafly Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Natural and Leafly is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings 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 Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Natural Grocers i.e., Natural Grocers and Leafly Holdings go up and down completely randomly.
Pair Corralation between Natural Grocers and Leafly Holdings
Given the investment horizon of 90 days Natural Grocers by is expected to generate 0.13 times more return on investment than Leafly Holdings. However, Natural Grocers by is 7.73 times less risky than Leafly Holdings. It trades about 0.08 of its potential returns per unit of risk. Leafly Holdings is currently generating about -0.34 per unit of risk. If you would invest 3,916 in Natural Grocers by on October 20, 2024 and sell it today you would earn a total of 117.00 from holding Natural Grocers by or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Grocers by vs. Leafly Holdings
Performance |
| Timeline |
| Natural Grocers by |
| Leafly Holdings |
Natural Grocers and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Grocers and Leafly Holdings
The main advantage of trading using opposite Natural Grocers and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' 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 |
| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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