Correlation Between Natural Health and BoohooCom PLC
Can any of the company-specific risk be diversified away by investing in both Natural Health and BoohooCom PLC 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 Health and BoohooCom PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Health Trend and BoohooCom PLC ADR, you can compare the effects of market volatilities on Natural Health and BoohooCom PLC 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 Health with a short position of BoohooCom PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Health and BoohooCom PLC.
Diversification Opportunities for Natural Health and BoohooCom PLC
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natural and BoohooCom is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Natural Health Trend and BoohooCom PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BoohooCom PLC ADR and Natural Health 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 Health Trend are associated (or correlated) with BoohooCom PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BoohooCom PLC ADR has no effect on the direction of Natural Health i.e., Natural Health and BoohooCom PLC go up and down completely randomly.
Pair Corralation between Natural Health and BoohooCom PLC
Given the investment horizon of 90 days Natural Health Trend is expected to under-perform the BoohooCom PLC. In addition to that, Natural Health is 1.19 times more volatile than BoohooCom PLC ADR. It trades about -0.11 of its total potential returns per unit of risk. BoohooCom PLC ADR is currently generating about 0.3 per unit of volatility. If you would invest 712.00 in BoohooCom PLC ADR on September 1, 2024 and sell it today you would earn a total of 109.00 from holding BoohooCom PLC ADR or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Natural Health Trend vs. BoohooCom PLC ADR
Performance |
| Timeline |
| Natural Health Trend |
| BoohooCom PLC ADR |
Natural Health and BoohooCom PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Health and BoohooCom PLC
The main advantage of trading using opposite Natural Health and BoohooCom PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Health position performs unexpectedly, BoohooCom PLC 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 BoohooCom PLC will offset losses from the drop in BoohooCom PLC's long position.| Natural Health vs. Liquidity Services | Natural Health vs. Hour Loop | Natural Health vs. Qurate Retail Series | Natural Health vs. Emerge Commerce |
| BoohooCom PLC vs. ASOS plc PK | BoohooCom PLC vs. Berkeley Group Holdings | BoohooCom PLC vs. ZALANDO SE ADR | BoohooCom PLC vs. Barratt Developments PLC |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |