Correlation Between GENERAL and Natural Alternatives
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By analyzing existing cross correlation between GENERAL ELEC CAP and Natural Alternatives International, you can compare the effects of market volatilities on GENERAL and Natural Alternatives 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 GENERAL with a short position of Natural Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Natural Alternatives.
Diversification Opportunities for GENERAL and Natural Alternatives
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GENERAL and Natural is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives and GENERAL 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 GENERAL ELEC CAP are associated (or correlated) with Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of GENERAL i.e., GENERAL and Natural Alternatives go up and down completely randomly.
Pair Corralation between GENERAL and Natural Alternatives
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to under-perform the Natural Alternatives. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL ELEC CAP is 1.15 times less risky than Natural Alternatives. The bond trades about -0.24 of its potential returns per unit of risk. The Natural Alternatives International is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 597.00 in Natural Alternatives International on September 2, 2024 and sell it today you would lose (128.00) from holding Natural Alternatives International or give up 21.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.19% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Natural Alternatives Internati
Performance |
| Timeline |
| GENERAL ELEC CAP |
| Natural Alternatives |
GENERAL and Natural Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Natural Alternatives
The main advantage of trading using opposite GENERAL and Natural Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Natural Alternatives 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 Alternatives will offset losses from the drop in Natural Alternatives' long position.| GENERAL vs. Hurco Companies | GENERAL vs. Dream Finders Homes | GENERAL vs. RBC Bearings Incorporated | GENERAL vs. KNOT Offshore Partners |
| Natural Alternatives vs. Seneca Foods Corp | Natural Alternatives vs. Central Garden Pet | Natural Alternatives vs. Central Garden Pet | Natural Alternatives vs. Lifeway Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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