Correlation Between Natura Co and Nu Skin
Can any of the company-specific risk be diversified away by investing in both Natura Co and Nu Skin 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 Natura Co and Nu Skin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natura Co Holding and Nu Skin Enterprises, you can compare the effects of market volatilities on Natura Co and Nu Skin 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 Natura Co with a short position of Nu Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natura Co and Nu Skin.
Diversification Opportunities for Natura Co and Nu Skin
Pay attention - limited upside
The 3 months correlation between Natura and NUS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Natura Co Holding and Nu Skin Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nu Skin Enterprises and Natura Co 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 Natura Co Holding are associated (or correlated) with Nu Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nu Skin Enterprises has no effect on the direction of Natura Co i.e., Natura Co and Nu Skin go up and down completely randomly.
Pair Corralation between Natura Co and Nu Skin
If you would invest 632.00 in Nu Skin Enterprises on August 24, 2024 and sell it today you would earn a total of 90.00 from holding Nu Skin Enterprises or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Natura Co Holding vs. Nu Skin Enterprises
Performance |
| Timeline |
| Natura Co Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nu Skin Enterprises |
Natura Co and Nu Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natura Co and Nu Skin
The main advantage of trading using opposite Natura Co and Nu Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natura Co position performs unexpectedly, Nu Skin 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 Nu Skin will offset losses from the drop in Nu Skin's long position.| Natura Co vs. Mannatech Incorporated | Natura Co vs. Edgewell Personal Care | Natura Co vs. Inter Parfums | Natura Co vs. Nu Skin Enterprises |
| Nu Skin vs. Herbalife Nutrition | Nu Skin vs. USANA Health Sciences | Nu Skin vs. Inter Parfums | Nu Skin vs. Flowers Foods |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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