Correlation Between Caltagirone SpA and Natural Health
Can any of the company-specific risk be diversified away by investing in both Caltagirone SpA and Natural Health 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 Caltagirone SpA and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caltagirone SpA and Natural Health Trends, you can compare the effects of market volatilities on Caltagirone SpA and Natural Health 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 Caltagirone SpA with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caltagirone SpA and Natural Health.
Diversification Opportunities for Caltagirone SpA and Natural Health
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caltagirone and Natural is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Caltagirone SpA and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends and Caltagirone SpA 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 Caltagirone SpA are associated (or correlated) with Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of Caltagirone SpA i.e., Caltagirone SpA and Natural Health go up and down completely randomly.
Pair Corralation between Caltagirone SpA and Natural Health
Assuming the 90 days trading horizon Caltagirone SpA is expected to generate 0.28 times more return on investment than Natural Health. However, Caltagirone SpA is 3.63 times less risky than Natural Health. It trades about 0.04 of its potential returns per unit of risk. Natural Health Trends is currently generating about -0.3 per unit of risk. If you would invest 594.00 in Caltagirone SpA on September 27, 2024 and sell it today you would earn a total of 4.00 from holding Caltagirone SpA or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caltagirone SpA vs. Natural Health Trends
Performance |
| Timeline |
| Caltagirone SpA |
| Natural Health Trends |
Caltagirone SpA and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caltagirone SpA and Natural Health
The main advantage of trading using opposite Caltagirone SpA and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caltagirone SpA position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
| Natural Health vs. COSTCO WHOLESALE CDR | Natural Health vs. Caltagirone SpA | Natural Health vs. CosmoSteel Holdings Limited | Natural Health vs. United States Steel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |