Correlation Between Squirrel Media and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Naturhouse 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 Squirrel Media and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Naturhouse Health SA, you can compare the effects of market volatilities on Squirrel Media and Naturhouse 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 Squirrel Media with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Naturhouse Health.
Diversification Opportunities for Squirrel Media and Naturhouse Health
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Squirrel and Naturhouse is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of Squirrel Media i.e., Squirrel Media and Naturhouse Health go up and down completely randomly.
Pair Corralation between Squirrel Media and Naturhouse Health
Assuming the 90 days trading horizon Squirrel Media SA is expected to under-perform the Naturhouse Health. In addition to that, Squirrel Media is 1.72 times more volatile than Naturhouse Health SA. It trades about -0.02 of its total potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.04 per unit of volatility. If you would invest 150.00 in Naturhouse Health SA on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Naturhouse Health SA or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
Squirrel Media SA vs. Naturhouse Health SA
Performance |
| Timeline |
| Squirrel Media SA |
| Naturhouse Health |
Squirrel Media and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Naturhouse Health
The main advantage of trading using opposite Squirrel Media and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Naturhouse 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| Squirrel Media vs. Tier1 Technology SA | Squirrel Media vs. Neinor Homes SLU | Squirrel Media vs. NH Hoteles | Squirrel Media vs. Elaia Investment Spain |
| Naturhouse Health vs. Techo Hogar SOCIMI, | Naturhouse Health vs. Arrienda Rental Properties | Naturhouse Health vs. Tier1 Technology SA | Naturhouse Health vs. Parlem Telecom Companyia |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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