Correlation Between Naturhouse Health and Catenon SA
Can any of the company-specific risk be diversified away by investing in both Naturhouse Health and Catenon SA 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 Naturhouse Health and Catenon SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naturhouse Health SA and Catenon SA, you can compare the effects of market volatilities on Naturhouse Health and Catenon SA 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 Naturhouse Health with a short position of Catenon SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturhouse Health and Catenon SA.
Diversification Opportunities for Naturhouse Health and Catenon SA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Naturhouse and Catenon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Naturhouse Health SA and Catenon SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catenon SA and Naturhouse 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 Naturhouse Health SA are associated (or correlated) with Catenon SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catenon SA has no effect on the direction of Naturhouse Health i.e., Naturhouse Health and Catenon SA go up and down completely randomly.
Pair Corralation between Naturhouse Health and Catenon SA
Assuming the 90 days trading horizon Naturhouse Health SA is expected to generate 0.55 times more return on investment than Catenon SA. However, Naturhouse Health SA is 1.82 times less risky than Catenon SA. It trades about 0.05 of its potential returns per unit of risk. Catenon SA is currently generating about -0.19 per unit of risk. If you would invest 168.00 in Naturhouse Health SA on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Naturhouse Health SA or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naturhouse Health SA vs. Catenon SA
Performance |
| Timeline |
| Naturhouse Health |
| Catenon SA |
Naturhouse Health and Catenon SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturhouse Health and Catenon SA
The main advantage of trading using opposite Naturhouse Health and Catenon SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturhouse Health position performs unexpectedly, Catenon SA 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 Catenon SA will offset losses from the drop in Catenon SA's long position.| Naturhouse Health vs. Caixabank SA | Naturhouse Health vs. Technomeca Aerospace SA | Naturhouse Health vs. Techo Hogar SOCIMI, | Naturhouse Health vs. Millenium Hotels Real |
| Catenon SA vs. Media Investment Optimization | Catenon SA vs. Ebro Foods | Catenon SA vs. Inhome Prime Properties | Catenon SA vs. Plasticos Compuestos SA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |