Correlation Between Nu Skin and Natura Co
Can any of the company-specific risk be diversified away by investing in both Nu Skin and Natura Co 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 Nu Skin and Natura Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nu Skin Enterprises and Natura Co Holding, you can compare the effects of market volatilities on Nu Skin and Natura Co 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 Nu Skin with a short position of Natura Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nu Skin and Natura Co.
Diversification Opportunities for Nu Skin and Natura Co
Pay attention - limited upside
The 3 months correlation between NUS and Natura is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nu Skin Enterprises and Natura Co Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natura Co Holding and Nu Skin 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 Nu Skin Enterprises are associated (or correlated) with Natura Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natura Co Holding has no effect on the direction of Nu Skin i.e., Nu Skin and Natura Co go up and down completely randomly.
Pair Corralation between Nu Skin and Natura Co
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 |
Nu Skin Enterprises vs. Natura Co Holding
Performance |
| Timeline |
| Nu Skin Enterprises |
| Natura Co Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nu Skin and Natura Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nu Skin and Natura Co
The main advantage of trading using opposite Nu Skin and Natura Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nu Skin position performs unexpectedly, Natura Co 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 Natura Co will offset losses from the drop in Natura Co's long position.| Nu Skin vs. Herbalife Nutrition | Nu Skin vs. USANA Health Sciences | Nu Skin vs. Inter Parfums | Nu Skin vs. Flowers Foods |
| Natura Co vs. Mannatech Incorporated | Natura Co vs. Edgewell Personal Care | Natura Co vs. Inter Parfums | Natura Co vs. Nu Skin Enterprises |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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