Correlation Between Naturhouse Health and Grupo Ecoener
Can any of the company-specific risk be diversified away by investing in both Naturhouse Health and Grupo Ecoener 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 Grupo Ecoener 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 Grupo Ecoener SA, you can compare the effects of market volatilities on Naturhouse Health and Grupo Ecoener 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 Grupo Ecoener. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturhouse Health and Grupo Ecoener.
Diversification Opportunities for Naturhouse Health and Grupo Ecoener
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Naturhouse and Grupo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Naturhouse Health SA and Grupo Ecoener SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Ecoener 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 Grupo Ecoener. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Ecoener SA has no effect on the direction of Naturhouse Health i.e., Naturhouse Health and Grupo Ecoener go up and down completely randomly.
Pair Corralation between Naturhouse Health and Grupo Ecoener
Assuming the 90 days trading horizon Naturhouse Health SA is expected to under-perform the Grupo Ecoener. In addition to that, Naturhouse Health is 1.1 times more volatile than Grupo Ecoener SA. It trades about -0.15 of its total potential returns per unit of risk. Grupo Ecoener SA is currently generating about 0.15 per unit of volatility. If you would invest 370.00 in Grupo Ecoener SA on August 28, 2024 and sell it today you would earn a total of 64.00 from holding Grupo Ecoener SA or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naturhouse Health SA vs. Grupo Ecoener SA
Performance |
| Timeline |
| Naturhouse Health |
| Grupo Ecoener SA |
Naturhouse Health and Grupo Ecoener Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturhouse Health and Grupo Ecoener
The main advantage of trading using opposite Naturhouse Health and Grupo Ecoener positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturhouse Health position performs unexpectedly, Grupo Ecoener 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 Grupo Ecoener will offset losses from the drop in Grupo Ecoener's long position.| Naturhouse Health vs. Atrys Health SL | Naturhouse Health vs. Plasticos Compuestos SA | Naturhouse Health vs. Home Capital Rentals | Naturhouse Health vs. Parlem Telecom Companyia |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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